THE  UNIVERSITY   LIBRARY 

UNIVERSITY  OF  CALIFORNIA,  SAN  DIEGO 

LA  JOLLA,  CALIFORNIA 


UNIVERSITY  OF  CALIFORNIA    SAN  DIEGO 


3  1822  00296  2108 


IOWA   ECONOMIC   HISTORY    SERIES 

EDITED    BY    BENJAMIN    F.    SHAMBAUGH 


ECONOMIC  LEGISLATION  IN  IOWA 


IOWA     ECONOMIC     HISTORY     SERIES 
EDITED    BY    BENJAMIN    P.     SHAMBAUGH 


HISTORY    OF 

ECONOMIC    LEGISLATION 

IN   IOWA 


BY 
IVAN    L.    POLLOCK 


PUBLISHED    AT    IOWA    CITY    IOWA    IN    1918    BY 
THE     STATE     HISTORICAL     SOCIETY     OF     IOWA 


EDITOR'S  INTRODUCTION 

The  importance  of  economic  problems  in  contempo- 
rary legislation  is  obvious:  governments  are  every- 
where protecting  and  improving  the  economic  weU- 
being  of  the  citizen.  Indeed,  under  modern  conditions 
such  legislation  is  imperative. 

This  review  of  the  History  of  Economic  Legislation 
in  Iowa,  prepared  by  Dr.  Pollock  for  publication  in 
the  loiva  Economic  History  Series,  corresponds  to  Dr. 
Briggs's  History  of  Social  Legislation  in  lotva  as 
already  published  in  the  Iowa  Social  History  Series. 

Benj.  F.  Shambaugh 

Office  of  the  Superintendent  and  Editor 

The  State  Historical  Society  of  Iowa 

Iowa  City  Iowa 


AUTHOR'S  PREFACE 

The  purpose  of  this  monograph  is  to  present  a  review  of 
the  laws  of  Iowa  which  have  been  enacted  primarily  through 
economic  considerations:  it  aims  to  trace  the  historical 
development  of  economic  legislation  in  such  a  manner  as  to 
indicate  the  tendencies  of  such  legislation  in  Iowa. 

Being  primarily  an  historical  review,  the  monograph  does 
not  attempt  to  treat  any  one  of  the  several  groups  of 
economic  legislation  in  an  exhaustive  manner.  A  special 
monograph  might  well  be  devoted  to  each  of  the  important 
divisions  of  this  volume.  Indeed,  several  such  special 
monographs  have  already  b6en  prepared  under  the  direction 
of  and  published  by  The  State  Historical  Society  of  Iowa 
(see  Downey's  History  of  Labor  Legislation  in  Iowa; 
Brindley's  History  of  Taxation  in  Iowa;  Brindley's  History 
of  Road  Legislation  in  Iowa;  and  Downey's  History  of 
Work  Accident  Indemnity  in  Iowa). 

The  scope  of  this  work  may  be  briefly  indicated  by  the 
statement  that  only  that  legislation  is  considered  which  has 
been  enacted  primarily  through  economic  considerations: 
it  includes  all  legislation  enacted  for  the  purpose  of 
internal  improvement  and  for  the  conservation  or  develop- 
ment of  the  natural  resources  of  the  State;  legislation 
enacted  for  the  purpose  of  regulating  business  in  its  various 
forms;  labor  legislation;  and  tax  legislation.  Legislation 
relative  to  those  branches  of  private  law  which  deal  with 


X  AUTHOR'S  PREFACE 

the  rights  of  property,  domestic  relations,  and  the  estates 
of  decedents  has  been  excluded  from  consideration  in  these 
pages. 

The  author  gratefully  acknowledges  his  obligation  to 
Professor  Benj.  F.  Shambaugh,  Superintendent  and  Editor 
of  The  State  Historical  Society  of  Iowa,  whose  guidance 
and  encouragement  made  the  work  possible.  Likewise  to 
Dr.  Dan  E.  Clark  the  writer  owes  much  besides  the  com- 
pilation of  the  index.  Acknowledgments  are  also  due  to 
Miss  Helen  Otto  for  assistance  in  the  verification  of  the 
manuscript,  and  to  Miss  Ruth  A.  Gallaher,  Librarian  of 
The  State  Historical  Society  of  Iowa. 

Ivan  L.  Pollock 

The  Wak  Teade  Board 
Washington,  D.  C. 


CONTENTS 

iNTKODUCTIOISr     ......"...  1 

I.     Tkansportation" 6 

II.     Raileoad  Transpoetation 35 

III.  Ageicultuee  and  Stock-eaising     ....  67 

IV.  Mines  and  Mining 81 

V.      CONSEEVATION  AND  InTEENAL  ImPEOVEMENTS        .  84 

VI.     Geneeal  Coepoeations 107 

VII.     Insueance  Legislation 135 

VIII.    Banking 168 

IX.    Building  and  Loan  Associations  ....  207 

X.     Teade  and  Commeece 215 

XI.    Labor  Legislation 251 

XII.     The   Powee   of  Municipal   Coepoeations  in 

Enacting  Economic  Legislation      .      .      .  277 

XIII.     Tax  Legislation 288 

Notes  and  Refeeences 319 

Index 367 


INTRODUCTION 

The  ultimate  purpose  of  government  is  to  secure  to  the 
individual  and  to  society  the  largest  practicable  measure  of 
well-being  by  equalizing  opportunity,  by  maintaining  order, 
by  providing  educational  facilities,  and  by  regulating  cer- 
tain factors  in  the  social  and  economic  environment  in  the 
interest  of  freedom.  In  other  words,  government  makes  for 
the  general  well-being  of  society  by  preventing  the  exploita- 
tion of  individuals,  groups,  or  classes.  Government  may 
even  contribute  directly  to  the  welfare  of  the  individual  by 
requiring  of  him  certain  action  in  his  own  interest.  "Be- 
sides administering  justice  and  protecting  life  and  property, 
it  is  the  plain  duty  of  the  state  to  see  to  it  that  the  social  and 
economic  conditions  under  which  the  individual  is  compelled 
to  live  are  such  that  he  can  develop  his  latent  abilities,  make 
the  most  of  the  faculties  with  which  he  is  endowed  by  nature, 
and  thus  realize  fully  the  ends  of  his  existence.  In  short, 
the  state  should  be  an  instrument  of  economic  and  social 
progress."^ 

Since  the  middle  of  the  nineteenth  century  there  has  been 
a  remarkable  change  of  attitude  in  regard  to  the  scope  of 
governmental  functions :  there  has  been  a  marked  tendency 
on  the  part  of  civilized  states  to  extend  their  activities  into 
fields  which  had  theretofore  been  left  to  unregulated  indi- 
vidual initiative.  Public  regulation  has  grown  steadily  in 
many  directions,  thus  greatly  modifying  the  individualistic 
theory  of  the  functions  of  the  state.  To  a  greater  extent 
than  ever  before  it  is  seen  that  the  individual  may  not 
always  be  the  best  judge  of  his  own  interests  —  that  collec- 
tive action  enforced  by  the  state  may  more  nearly  equalize 
opportunity  and  thus  make  for  the  best  interests  both  of  the 


2  ECONOMIC  LEGISLATION  IN  IOWA 

individual  and  of  society.  The  feeling  is  growing  that  if  the 
state  has  the  right  and  duty  to  protect  the  individual  or 
society  from  fraud  and  imposition  by  preventive  measures, 
it  has  the  same  right  and  duty  to  protect  the  individual  or 
society  by  constructive  measures  which  will  make  preventive 
measures  less  necessary.^ 

In  the  United  States  there  has  already  developed  a  large 
body  of  purposeful  governmental  restrictions  and  regula- 
tions, both  Federal  and  State,  which  indicate  a  decided 
tendency  away  from  individualism  and  toward  collectivism. 
These  measures,  so  far  as  they  are  economic  in  character, 
may  be  classified  as  follows :  governmental  encouragement 
of  internal  improvements;  the  conservation  of  natural  re- 
sources ;  the  regulation  of  the  manufacture  and  sale  of  foods 
and  food  products ;  restrictions  on  the  organization  of  busi- 
ness; restrictions  on  and  regulation  of  transportation; 
regulation  of  exchange,  banking,  and  insurance ;  restrictions 
on  profits ;  and  restrictions  on  and  regulation  of  labor  con- 
ditions and  labor  contracts.  Moreover,  there  is  an  increas- 
ing number  of  people  who  demand  legislation  for  the  relief 
of  their  social  and  economic  wants.  Indeed,  there  is  a  wide- 
spread feeling  that  the  government  should  direct  the  forces 
of  industry,  commerce,  and  science  in  such  a  way  as  to  make 
the  interests  of  individuals  and  of  society  as  nearly  identical 
as  possible.^ 

Besides  the  regulation  and  control  of  great  nation-wide 
industries,  the  Federal  government  is  confronted  with  the 
solution  of  many  other  economic  problems.  Thus  a  catalog 
of  the  most  important  economic  activities  of  the  Federal 
government  would  include  the  regulation  and  control  of  the 
national  banking  system,  the  regulation  and  control  of  trusts 
and  of  interstate  and  international  commerce,  the  conser- 
vation of  natural  resources,  the  construction  of  great  public 
works  for  irrigation,  the  improvement  of  rivers  and  har- 
bors, the  building  of  the  Panama  canal,  the  publication  of 


INTRODUCTION  3 

reports  on  the  movements  of  commerce,  the  compilation  of 
agricultural  statistics,  and  the  enactment  of  pure  food 
regulations.* 

But  in  all  of  its  economic  activities  the  Federal  govern- 
ment is  limited  to  the  exercise  of  powers  conferred  upon  it 
by  the  Federal  Constitution.  On  the  other  hand,  the  powers 
of  the  State  being  general  in  their  scope,  the  State  govern- 
ment may  legislate  very  broadly  for  the  furtherance  of  the 
general  welfare  of  the  people.  It  may  legislate  in  the  inter- 
ests of  the  health,  the  good  order,  the  education,  and  the 
morals  of  the  inhabitants  of  the  State ;  and  all  laws  enacted 
for  the  furtherance  of  these  objects  will  be  enforced  as  valid 
unless  they  should  be  found  to  violate  some  of  the  constitu- 
tional limitations  upon  the  powers  of  State  governments.^ 

Moreover,  while  the  Federal  government  has  developed 
new  functions  and  new  methods  in  the  field  of  economic  and 
social  legislation,  State  governments  have  not  remained  in- 
active. Thus  the  several  States  have  undertaken  to  super- 
vise and  regulate  transportation  companies  within  their 
borders;  they  have  granted  charters  with  limited  liability 
to  corporations ;  they  have  incorporated  and  regulated  in- 
surance companies  and  banking  associations;  they  have 
provided  for  the  regulation  of  gas,  electric  light  and  power, 
and  local  transportation  companies;  and  they  have  also 
begun  to  regulate  and  control  food  producing  establishments 
and  other  similar  industries.  In  addition  to  these  activities 
the  State  governments  have  promoted  internal  development. 
They  have  built  roads  and  encouraged  improved  methods  of 
agriculture  and  stock-breeding.  They  have  made  arrange- 
ments for  the  draining  of  swamp  lands,  and  initiated  policies 
for  the  conservation  of  natural  resources.  Finally,  they 
have  developed  methods  of  taxation  by  which  revenue  is 
raised  for  the  conduct  of  both  State  and  local  governmental 
activities.^ 

In  view  of  these  conditions  it  would  seem  worth  while  to 


4  ECONOMIC  LEGISLATION  IN  IOWA 

review  tlie  economic  legislation  of  a  typical  State  of  the 
Middle  West  and  to  show  just  what  that  State  has  done  in 
this  interesting  field  of  governmental  direction  and  control. 

In  any  attempt  to  discuss  the  regulation  and  control  of 
economic  conditions  by  law  it  is  of  course  essential  to  have 
clearly  in  mind  just  what  is  meant  by  economic  legislation. 
As  used  in  this  volume  the  term  economic  legislation  means 
all  legislation  which  directly  affects  or  attempts  to  regulate 
the  economic  condition  of  society,  that  is,  legislation  enacted 
for  the  purpose  of  bettering  and  protecting  the  economic 
condition  of  the  people  of  the  State.  It  consists  of  all  those 
measures  the  object  and  purpose  of  which  are,  on  the  one 
hand,  to  secure  to  every  one  in  the  State  equality  of  oppor- 
tunity and,  on  the  other  hand,  to  prevent  the  exploitation  of 
one  class  by  another  class :  it  attempts  to  secure  fair  play  in 
business.  Economic  legislation  consists,  moreover,  of  all 
those  measures  the  object  and  purpose  of  which  are  to  en- 
courage the  development  and  conservation  of  the  resources 
of  the  State,  and  includes  road  legislation,  drainage  laws, 
the  encouragement  of  agriculture  and  stock-raising,  and  the 
geological  survey.  It  is  legislation  which  is  enacted  pri- 
marily through  economic  considerations. 

In  a  broad  sense  this  might  seem  to  include  all  the  legis- 
lation enacted  from  the  social  point  of  view,  and  commonly 
designated  as  social  legislation,  as  well  as  the  legislation 
which  is  primarily  economic.  All  socio-economic  legislation, 
such  as  poor  laws  and  liquor  legislation,  as  well  as  legis- 
lative provision  for  education  might  be  included.  Poor 
relief  might  seem  to  be  purely  social,  yet  poverty  is  largely 
the  result  of  economic  conditions ;  and  the  economic  effect  of 
the  use  of  intoxicating  liquors  can  hardly  be  overestimated. 
Education,  moreover,  affects  very  directly  the  economic 
well-being  of  society,  especially  as  regards  the  recent 
tendency  toward  provision  for  vocational  training  in  the 
public  schools.    Such  legislation  has,  however,  been  guided 


INTRODUCTION  5 

by  ethical  rather  than  by  economic  considerations,  and  it  is 
upon  this  ground  that  it  has  been  excluded  from  these  pages. 

Again,  labor  legislation,  including  factory  laws,  child 
labor  laws,  and  laws  for  the  regulation  of  labor  contracts, 
appears  to  be  quite  as  much  social  as  economic;  and  the 
same  may  be  said  of  pure  food  laws  and  misbranding  laws. 
But  an  examination  of  such  laws  and  of  the  causes  which 
have  led  to  their  enactment  shows  that  there  have  been  in  all 
such  legislation  economic  as  well  as  social  considerations; 
and  so  labor  legislation  can  not  be  overlooked  in  this  con- 
nection. At  the  same  time  it  must  be  freely  admitted  that 
the  distinction  between  economic  and  social  legislation  is 
one  of  degree  only.  It  seems  advisable,  therefore,  in  dis- 
cussing socio-economic  legislation  to  emphasize  the  eco- 
nomic factors  and  to  pass  over  without  special  consideration 
the  social  aspects  of  the  problems. 

A  third  group  of  laws  which  are  economic  in  their  nature, 
and  of  which  some  account  must  be  taken,  comprises  that 
body  of  legislation  which  has  to  do  with  the  collection  and 
expenditure  of  revenue  and  with  the  financial  administration 
of  the  government.  Such  legislation  may  be  designated  as 
politico-economic.  It  is  not  enacted  from  economic  consid- 
erations primarily,  and  yet  the  economic  interests  of  the 
people  are  directly  affected  by  it  —  as  is  shown  by  the  fact 
that  in  1915  the  total  tax  levied  in  Iowa  for  all  purposes 
amounted  to  more  than  $50,000,000. 

Thus  defined  and  limited  economic  legislation  in  Iowa  may 
be  understood  to  include  (1)  all  legislation  enacted  for  the 
purpose  of  internal  improvement  and  for  the  purpose  of 
conserving  or  developing  the  natural  resources  of  the  State, 
(2)  legislation  which  has  been  enacted  for  the  purpose  of 
regulating  business  in  its  various  forms,  (3)  labor  legisla- 
tion or  legislation  enacted  in  order  to  prevent  the  exploita- 
tion of  one  class  by  another  class,  and  (4)  tax  legislation. 


TRANSPORTATION 

Since  the  time  when  the  Iowa  country  was  first  thrown 
open  to  settlement,  the  means  and  methods  of  transportation 
have  undergone  many  changes.  The  earlier  settlements 
were  made  chiefly  along  navigable  rivers,  and  the  interior 
occupation  of  the  State  progressed  slowly  and  always  along 
the  water  courses.  Settlers  searching  for  a  location  could 
cross  the  prairie  in  wagons,  but  in  order  to  market  their 
produce  they  had  to  occupy  land  reasonably  near  the  nav- 
igable streams.  Although  the  need  for  transportation  facil- 
ities was  keenly  felt  by  the  pioneers,  it  was  not  until  the 
Iowa  country  had  become  a  part  of  the  original  Wisconsin 
Territory  in  1836  that  any  attempt  was  made  through  legis- 
lation to  meet  the  demands  of  the  settlers  for  better  means 
of  transportation. 

WATER  TRANSPORTATION 

Iowa  escaped,  for  the  most  part,  the  heavy  expenditures 
for  canals  and  the  improvement  of  water  courses  such  as 
were  made  by  several  of  the  States  east  of  the  Mississippi. 
This  escape  was  due  chiefly  to  the  fact  that  long  before  the 
Iowa  country  was  fully  settled  the  practicability  of  rail- 
roads as  a  means  of  transportation  had  been  fully  demon- 
strated. 

Many  of  the  pioneers  of  the  Territory  came  into  the  coun- 
try by  way  of  the  Ohio  and  Mississippi  rivers,  or  by  way  of 
the  Great  Lakes  and  the  Wisconsin  and  Fox  rivers;  and 
settlements  were  made  along  the  banks  of  the  Mississippi 
River  or  along  the  rivers  of  the  eastern  part  of  the  Terri- 


TRANSPORTATION  7 

tory  which  emptied  into  the  Mississippi.  In  the  early  days 
the  pioneers  naturally  looked  upon  the  rivers  as  highways 
over  which  their  products  would  be  transported  to  market. 
Governor  Henry  Dodge  in  his  first  annual  message  to  the 
Legislative  Assembly  of  the  Territory  of  Wisconsin  in  1836 
recommended  that  Congress  be  asked  for  an  appropriation 
for  the  removal  of  the  obstructions  in  the  rapids  of  the 
upper  Mississippi  and  for  the  improvement  of  the  naviga- 
tion of  the  Fox  and  Wisconsin  rivers.'^ 

Upon  the  organization  of  the  Iowa  country  as  a  separate 
Territory  in  1838  one  of  the  most  important  problems  that 
confronted  the  legislature  was  that  of  facilitating  transpor- 
tation, so  that  the  products  of  the  settlers  could  be  taken  to 
market  as  speedily  and  as  cheaply  as  possible.  River  im- 
provement seemed  to  be  the  only  solution  of  this  problem, 
and  so  almost  immediately  the  waterways  of  the  eastern 
part  of  the  Territory  received  serious  attention.  The  Ma- 
quoketa,  Wapsipinicon,  Cedar,  Iowa,  and  Skunk  rivers,  and 
later  the  Little  Sioux  River  in  western  Iowa,  were  consid- 
ered to  be  navigable,  and  obstructions  to  navigation  thereon 
were  prohibited.  Besides  other  regulations,  owners  of  mill 
dams  were  required  to  construct  locks  or  chutes  for  the 
passage  of  boats. ^  But  aside  from  the  ambitious  project  for 
the  improvement  of  the  Des  Moines  River,  legislation  rela- 
tive to  the  improvement  of  navigation  was  scattered  and  for 
the  most  part  ineffective,  although  many  memorials  and 
joint  resolutions  were  passed  praying  Congress  to  grant 
lands  or  make  appropriations  of  money  to  aid  in  improving 
the  navigation  of  the  rivers  and  streams  of  the  State.®  With 
the  advent  of  railroads  the  importance  of  water  transporta- 
tion declined  and  the  subject  all  but  disappears  from  the 
annals  of  State  legislation. 

A  few  statutes,  regulatory  in  character,  have  been  enacted 
relative  to  water  carriers,  such  as  the  acts  requiring  the 
inspection  of  passenger  boats  and  the  equipment  of  such 


8  ECONOMIC  LEGISLATION  IN  IOWA 

boats  with  life  preservers.^^  In  fact,  the  first  law  relative 
to  transportation  or  carriers  enacted  by  the  Legislative  As- 
sembly of  the  Territory  of  Iowa  was  **  An  Act  to  provide  for 
the  collection  of  demands  against  Boats  and  Vessels",  ap- 
proved on  December  20, 1838.  This  act  provided  that  every 
boat  or  vessel  used  in  navigating  the  waters  of  the  Territory 
of  Iowa  should  be  liable  for  all  debts  of  the  master  or  owner 
for  supplies  or  materials  furnished,  for  wharfage  dues,  for 
damages  for  nonperformance  of  contract,  and  for  injuries 
done  to  persons  or  property  by  such  boat  or  vessel.  An  act 
approved  on  January  4, 1839,  provided  for  the  prevention  of 
disasters  on  steamboats  navigating  waters  within  the  juris- 
diction of  the  Territory.^^ 

THE  DES  MOINES  EIVER  IMPROVEMENT 

The  most  ambitious  project  relative  to  water  transporta- 
tion attempted  in  Iowa  was  the  improvement  of  the  Des 
Moines  Eiver  by  a  system  of  slack  water  navigation  —  an 
undertaking  which  received  attention  and  aid  from  Congress 
as  well  as  from  the  State  legislature.  The  Des  Moines  was 
the  largest  river  in  the  Iowa  country.  It  offered  the  possi- 
bility of  steam  navigation  for  a  distance  of  one  hundred 
miles  in  a  good  stage  of  water;  and  thus,  as  the  population 
of  the  surrounding  country  increased  and  the  local  products 
became  more  valuable,  agitation  for  the  improvement  of  the 
river  was  begun.  As  early  as  1839  the  Legislative  Assembly 
of  the  Territory  authorized  the  construction  of  a  dam  across 
the  Des  Moines,  but  required  that  it  contain  a  "convenient 
lock,  not  less  than  one  hundred  and  thirty  feet  in  length,  and 
thirty-five  feet  in  width,  for  the  passing  of  steam,  keel,  and 
flat  boats,  rafts,  and  other  water  crafts"  of  two  or  more  tons 
burden.  The  lock  was  to  be  kept  in  repair  and  boats  were  to 
be  passed  without  delay.^^ 

At  its  next  session  the  Legislative  Assembly  passed  a 
joint  resolution  asking  Congress  to  make  an  appropriation 


TRANSPORTATION  9 

for  the  survey  and  improvement  of  the  Des  Moines  Eiver,  to 
which  Congress  finally  responded  through  *'An  Act  grant- 
ing certain  Lands  to  the  Territory  of  Iowa,  to  aid  in  the 
Improvement  of  the  Navigation  of  the  Des  Moines  River,  in 
said  Territory",  which  was  approved  on  August  8,  1846. 
This  act  provided  ' '  that  there  be,  and  hereby  is,  granted  to 
the  Territory  of  Iowa,  for  the  purpose  of  aiding  said  Terri- 
tory to  improve  the  navigation  of  the  Des  Moines  River, 
from  its  mouth  to  the  Raccoon  Fork,  (so-called,)  in  said 
Territory,  one  equal  moiety  in  alternate  sections,  of  the 
public  lands,  (remaining  unsold,  and  not  otherwise  disposed 
of,  encumbered,  or  appropriated,)  in  a  strip  five  miles  in 
width  on  each  side  of  said  river  ".^^ 

By  a  joint  resolution  passed  on  January  9, 1847,  the  Gen- 
eral Assembly  of  Iowa  accepted  the  grant  (amounting  to 
about  900,000  acres)  for  the  purposes  specified  in  the  act  of 
Congress.  A  Board  of  Public  Works  was  immediately  cre- 
ated to  take  charge  of  the  work  of  improvement,  which  was 
to  consist  of  a  system  of  slack  water  navigation  by  means  of 
dams  and  locks,  to  be  paid  for  out  of  the  proceeds  of  the 
lands  which  were  to  be  sold  for  that  purpose. 

The  enterprise  was  soon  confronted  by  unforeseen  diffi- 
culties. The  work  not  having  progressed  as  rapidly  as  had 
been  expected,  agitation  for  a  more  vigorous  prosecution  of 
the  improvement  resulted  in  the  reorganization  of  the  Board 
of  Public  Works.  Later  the  board  was  abolished  and  the 
offices  of  Commissioner  and  Register  of  the  Des  Moines 
River  Improvement  were  created  in  its  place.  To  the  Com- 
missioner was  committed  the  oversight  and  control  of  the 
work;  while  to  the  Register  was  assigned  the  performance 
of  all  duties  connected  with  the  sale  of  lands.  Under  the  law 
these  officers  were  given  large  powers :  they  could  make  any 
disposition  of  the  lands,  tolls,  and  water  power  which  they 
saw  fit,  being  limited  only  by  the  approval  of  the  Governor. 
In  1853  both  officers  were  made  elective;  and  in  1857  the 


10  ECONOMIC  LEGISLATION  IN  IOWA 

office  of  Register  was  abolished  and  the  Register  of  the  State 
Land  Office  was  given  charge  of  the  improvement  lands. ^'^ 

In  the  meantime  difficulties  arose  between  the  Commis- 
sioner of  the  Des  Moines  River  Improvement  and  the  De 
Moine  Navigation  and  Railroad  Company  to  whom  the  Com- 
missioner had  let  the  contract  (on  June  9,  1854)  for  the 
improvement  of  the  river  from  its  mouth  to  the  Raccoon 
Forks.^^  A  settlement  of  these  difficulties  between  the  State 
and  the  company  was  effected  through  a  joint  resolution  of 
the  General  Assembly.  By  the  provisions  of  this  settlement 
the  State  was  released  from  all  contracts  for  water  rents  or 
claims  for  lands,  and  the  company  surrendered  to  the  State 
its  dredge  boat  and  $20,000  in  cash  and  received  more  than  a 
quarter  of  a  million  acres  of  land.  The  General  Assembly 
immediately  granted  the  lands  yet  remaining  to  the  Keokuk, 
Fort  Des  Moines,  and  Minnesota  Railroad  Company  on  con- 
dition that  the  company  complete  certain  specified  portions 
of  the  improvement,  assume  all  liabilities  against  the  Des 
Moines  River  Improvement,  and  complete  seventy-five  miles 
of  the  proposed  railroad  within  three  years.  In  1860  the 
office  of  the  '^  Commissioner  of  the  Des  Moines  River  Im- 
provement" was  abolished. ^^ 

There  continued  to  be  a  great  deal  of  legislation  relative 
to  the  Des  Moines  River  improvement ;  but  the  laws  enacted 
after  1860  had  to  do  with  settling  disputes  over  the  owner- 
ship of  lands.  The  project  of  improving  the  navigation  of 
the  Des  Moines  River  did  not  accomplish  what  had  been 
expected  of  it.  Moreover,  the  railroads  were  relieving  the 
pressing  need  for  transportation  which  had  led  the  State 
into  the  improvement  project;  and  so  in  1866  the  General 
Assembly  in  a  memorial  to  Congress  asked  that  the  Des 
Moines  River  be  declared  non-navigable.  During  the  same 
session  an  act  was  passed  repealing  all  laws  requiring  locks 
in  dams  and  draws  in  bridges  on  the  Des  Moines  River.^^ 

Two  other  projects  relative  to  water  transportation  re- 


TRANSPORTATION  11 

ceived  much  attention  from  the  legislature  of  Iowa,  namely, 
the  construction  of  a  canal  around  the  Des  Moines  or  lower 
rapids  in  the  Mississippi  opposite  Keokuk,  and  the  opening 
of  a  waterway  between  the  Mississippi  River  and  the  Great 
Lakes.  Congress  provided  for  the  construction  of  a  canal 
and  locks  around  the  rapids  in  the  Mississippi  at  Keokuk; 
but  the  *' Lakes  to  the  Gulf  Waterway"  has  not  yet  been 
realized.^^ 

FERRIES  AND  BRIDGES 

The  pioneers  who  came  overland  to  the  Iowa  country  were 
under  the  necessity  of  being  ferried  across  the  Mississippi, 
since  there  were  no  bridges  and  the  river  could  not  be 
forded.  After  reaching  the  Iowa  country  the  settler  found 
many  streams,  few  roads,  and  no  bridges.  In  view  of  the 
pressing  need  for  roads  and  bridges  the  State  and  Terri- 
torial legislatures  in  the  upper  Mississippi  Valley  were 
quick  to  respond  to  the  demands  of  the  people.  The  General 
Assembly  of  Illinois  passed  ten  acts  establishing  ferries 
across  the  Mississippi  River  to  the  Iowa  country.  The  first 
of  these  acts  was  approved  on  March  1, 1833.  Twelve  ferries 
across  the  Mississippi  were  authorized  by  the  Legislative 
Assembly  of  the  original  Territory  of  Wisconsin ;  while  the 
Legislative  Assembly  of  the  Territory  of  Iowa  passed  fifty- 
six  acts  relative  to  ferries,  of  which  forty-two  authorized 
ferries  across  the  Mississippi.  Other  special  acts  authorized 
ferries  across  the  Des  Moines,  the  Iowa,  and  the  Cedar 
rivers.  At  the  same  time  several  ferry  laws  of  a  general 
regulatory  character  were  placed  upon  the  statute  books. 

The  first  law  of  the  Territory  of  Iowa  relative  to  ferries, 
approved  on  December  14,  1838,  authorized  Mr.  Timothy 
Fanning  ''to  establish  and  keep  a  ferry  across  the  Missis- 
sippi river,  at  the  town  of  Du  Buque"  for  a  period  of  twenty 
years.  According  to  its  provisions  no  other  person  was  to  be 
allowed  to  establish  a  ferry  within  the  limits  of  the  town.  A 


12  ECONOMIC  LEGISLATION  IN  IOWA 

good  and  sufficient  steam  ferry  boat  for  the  transportation 
of  all  persons  and  their  property  across  the  river  without 
delay  was  to  be  procured  within  two  years ;  and  in  the  mean- 
time a  sufficient  number  of  flat  boats  with  a  sufficient  number 
of  employees  to  operate  them  were  to  be  provided.  Violation 
of  the  grant  in  any  way  made  the  whole  charter  void  — 
provision  being  made  for  the  disposal  of  the  ferry  accord- 
ing to  law.  This  act  was  tj^ical  of  the  special  laws  author- 
izing ferries  in  the  Territory.^^ 

The  first  general  act  regulating  ferries  was  approved  on 
December  20,  1838.  By  the  pro\dsions  of  this  act  no  one 
was  allowed  to  keep  a  ferry  across  any  stream  —  except  the 
Mississippi  Eiver  —  without  having  first  obtained  permis- 
sion from  the  county  commissioners'  court,  which  was 
authorized  to  grant  licenses  for  a  period  of  not  more  than 
five  years.  License  fees  were  required,  and  the  licensed 
party,  whose  duties  were  expressly  prescribed,  was  given 
the  exclusive  right  to  operate  a  ferry  at  the  place  named. 
Ferries  were  not  to  be  permitted  within  less  than  one  mile 
of  each  other.  The  county  commissioners'  court  was  to  fix 
the  rates  of  ferriage  for  every  ferry,  and  the  rates  were  to 
be  posted  on  the  ferry,  a  penalty  being  provided  for  over- 
charging.-^ The  ferry  charges  were  more  or  less  uniform 
throughout  the  Territory,  the  rates  of  toll  on  the  Missis- 
sippi being  at  least  twice  those  on  the  rivers  within  the 
Territory. 

During  the  first  few  years  following  the  admission  of 
Iowa  into  the  Union  the  General  Assembly  continued  the 
policy  of  granting  authority  to  establish  ferries  by  special 
acts.  *'An  Act  for  extending  the  powers  of  the  Board  of 
County  Commissioners  in  regard  to  licensing  and  regulating 
Ferries",  approved  on  February  24,  1847,  conferred  upon 
the  commissioners  the  power  to  grant  licenses  upon  the  con- 
dition that  the  applicant  give  satisfactory  evidence  of  his 
ability  to  comply  with  such  regulations  as  the  commission- 


TRANSPORTATION  13 

ers  might  prescribe.  The  privilege  might  be  exercised  ex- 
clusively for  a  distance  of  not  more  than  two  miles  each  way 
from  a  specified  point,  for  a  period  not  longer  than  twelve 
years.  Suitable  ferries  equipped  with  all  needful  fixtures 
were  to  be  maintained.  The  commissioners  were  empowered 
to  fix  the  rates  of  ferriage  and  the  amount  which  should  be 
paid  annually  to  the  county.  Licenses  from  both  counties 
were  required  for  ferries  across  streams  dividing  counties ; 
and  the  commissioners  were  to  require  the  owners  to  give 
bonds  for  the  faithful  performance  of  their  duty.^^  The  act 
of  1847  was  the  last  law  of  importance  relative  to  ferries  in 
Iowa :  bridges  were  rapidly  taking  the  place  of  ferry  boats. 
In  1858,  however,  it  appears  that  cities  were  given  exclusive 
power  to  establish,  regulate,  and  license  ferries  within  their 
bounds. 

Boats  as  a  means  of  transportation  being  indispensable  to 
the  pioneers,  the  legislation  relative  to  ferries  in  the  early 
history  of  Iowa  was  necessary  to  the  economic  development 
of  the  new  country.^^ 

Bridge  legislation  is  now  closely  connected  with  road  leg- 
islation, but  during  the  period  of  settlement  the  regulation 
of  bridges  was  associated  with  the  regulation  of  ferries. 
Up  to  the  close  of  the  Territorial  period  there  were  very 
few  bridges  across  the  larger  streams.  On  the  rivers  and 
larger  streams  ferries  were  operated;  while  the  smaller 
streams  were  nearly  everywhere  forded.  On  January  15, 
1841,  "An  Act  to  authorize  Peter  Brewer  and  Company  to 
build  a  Bridge  over  Skunk  River"  was  approved.  This  act 
provided  that  the  bridge  should  be  erected  within  three 
years,  should  have  abutments  and  piers  of  stone,  and  should 
either  be  high  enough  not  to  impair  the  navigation  of  the 
stream  or  contain  a  draw.  The  company  was  to  have  a  char- 
ter for  fifteen  years ;  the  stock  was  limited  to  $10,000 ;  and 
the  rate  of  toll  was  to  be  fixed  by  the  commissioners  of  Lee 


14  ECONOMIC  LEGISLATION  IN  IOWA 

and  Des  Moines  counties.  Section  six  of  the  act  provided 
that  the  company  "shall  not  exercise  any  banking  privi- 
leges, and  shall  purchase  no  other  personal  or  real  property 
than  may  be  necessary  for  the  erection  of  said  bridge ' '. 

In  1844  the  "Wabesipinicon  Bridge  Company"  was  in- 
corporated under  provisions  similar  to  those  of  the  act  of 
1841.  Moreover,  the  corporation  was  required  to  keep  a 
record  of  the  expenses  of  construction  and  operation,  as  well 
as  of  the  tolls ;  and  when  the  tolls  amounted  to  enough  to 
cover  all  expenses  of  construction  and  maintenance  and 
interest  on  the  investment  and  an  allowance  for  tending  and 
keeping  the  bridge  in  repair,  the  bridge  was  to  become  the 
property  of  the  public  and  to  remain  forever  after  a  free 
bridge.2^ 

Special  acts  were  passed  by  the  General  Assembly  in 
1848  and  1849  authorizing  toll  bridge  companies  to  erect 
two  bridges  over  the  Wapsipinicon  Eiver;  and  in  1850  the 
commissioners  of  Jackson  County  were  authorized  to  sub- 
mit to  the  people  the  question  of  levying  a  tax  to  bridge  the 
Maquoketa  River  at  Bridgeport. 

The  Code  of  1851  made  provision  for  a  special  property 
tax,  not  exceeding  one  mill  on  the  dollar  in  any  year,  to  be 
levied  by  the  county  court  for  building  any  bridge  which 
was  found  too  expensive  to  be  constructed  from  the  ordi- 
nary road  fund.  The  law  also  provided  for  licenses  for  con- 
structing toll  bridges  and  prescribed  regulations  for  bridges 
constructed  under  such  licenses.  The  county  court  was  to 
have  control  over  the  whole  matter.^'* 

In  1855  a  law  was  enacted  granting  a  right  of  way  sixty 
feet  wide  to  any  person  or  persons  building  or  who  might 
thereafter  build  a  bridge  across  the  streams  of  the  State; 
and  a  board  of  commissioners  was  created  with  authority  to 
erect  a  free  bridge  across  the  Cedar  River  at  Cedar  Rapids. 
The  board  was  to  receive  voluntary  subscriptions  for  the 
erection  of  this  bridge.    It  appears  that  the  plan  was  not 


TRANSPORTATION  15 

successful,  and  the  bridge  was  later  turned  over  to  a  private 
party  to  be  completed  as  a  toll  bridge.  During  the  session 
of  1856-1857  the  bridge  over  the  Skunk  River  at  Union 
Mills  was  declared  to  be  a  part  of  the  highway,  and  the 
Keokuk  and  Illinois  Bridge  Company  was  authorized  to 
build  a  bridge  over  the  Mississippi  River  at  Keokuk  —  a 
bridge  to  which  this  company  was  granted  exclusive  right.^^ 

A  general  law  authorizing  the  construction  of  bridges  in 
the  State  was  approved  on  March  22, 1858.  It  provided  that 
the  county  courts  should  have  authority  to  grant  charters 
for  the  erection  of  bridges  and  defined  the  method  of  obtain- 
ing such  charters.  The  county  judge  was  empowered  to 
cause  the  erection  of  bridges  costing  less  than  $500.  He 
could  contract  for  the  erection  of  more  expensive  bridges 
upon  the  petition  of  one  hundred  qualified  voters.  Several 
special  but  unimportant  amendatory  acts  were  passed  dur- 
ing the  sessions  of  the  fifth,  sixth,  and  ninth  General  As- 
semblies. The  county  supervisors  were  allowed  to  spend 
$5000  on  bridges  or  county  buildings  without  submitting 
the  proposition  to  a  vote  of  the  people,  and  the  limit  of  the 
bridge  tax  was  raised  to  three  mills. 2*^ 

In  1868  a  right  of  way  sixty  feet  in  width  was  granted  to 
companies  constructing  toll  bridges ;  and  in  1870  the  powers 
of  boards  of  supervisors  in  building  bridges  were  enlarged. 
Boards  were  authorized  to  allow  from  $10,000  to  $20,000  for 
bridges  according  to  the  population  of  their  counties;  and 
cities  were  authorized  to  build  and  maintain  toll  bridges 
and  to  prescribe  regulations  and  toll  rates.  ''An  Act 
Authorizing  the  Appropriation  of  Money  to  build  Bridges", 
approved  on  January  31,  1872,  increased  the  power  of 
county  boards  and  city  councils  relative  to  expending  money 
for  building  bridges.  Another  act  of  the  same  session  pro- 
vided that  cities  and  towns  should  be  entitled  to  the  portion 
of  the  bridge  tax  levied  within  their  limits  where  there  was 
need  for  bridges  within  the  limits  of  such  municipalities.^'^ 


16  ECONOMIC  LEGISLATION  IN  IOWA 

Prior  to  1860  bridges  were  among  the  objects  of  internal 
improvement  for  which  Federal  aid  was  requested.  During 
the  sessions  of  1845  and  1846  the  Legislative  Assembly 
passed  four  joint  resolutions  asking  for  the  appropriation 
of  sums  varying  from  $1000  to  $10,000  for  the  purpose  of 
building  certain  bridges  in  the  Iowa  country.  The  General 
Assembly  passed  four  joint  resolutions,  between  1849  and 
1851,  asking  Congress  to  aid  in  the  construction  of  bridges 
by  donating  seventy-two  sections  of  land  and  appropriating 
$20,000.  Again,  in  1855  Congress  was  asked  to  make  an 
appropriation  for  the  construction  of  bridges  within  the 
State;  and  for  the  same  purpose  aid  was  once  more  re- 
quested in  1872.28 

EOADS  AND  HIGHWAYS  29 

When  settlers  first  began  to  come  into  the  Iowa  country 
in  June,  1833,  there  were,  in  places,  trails  and  paths  which 
had  been  worn  by  the  Indians  or  by  the  larger  game  animals, 
but  these  could  not  always  be  used  by  the  pioneers  in  making 
their  way  across  the  country.  Roads,  in  the  modern  sense, 
did  not  exist.  Streams  were  much  used  since  they  offered  a 
natural  and  easy  method  of  travel.  But  streams  were  not 
always  available,  and,  except  for  those  who  lived  near  the 
water,  overland  hauling  was  necessary  in  order  to  reach  this 
natural  means  of  transportation. 

It  was  not,  however,  until  the  Iowa  country  had  become  a 
part  of  the  original  Territory  of  Wisconsin  that  any  legis- 
lative mention  was  made  of  roads.  *'An  Act  to  locate  and 
establish  a  territorial  road  west  of  the  Mississippi"  was 
approved  on  December  7,  1836.  This  act  provided  for  the 
appointment  of  six  commissioners  who  were  to  employ  a 
surveyor  and  establish  a  road  starting  at  Farmington  on 
the  Des  Moines  River  and  running  via  Moffit's  Mill, 
Wapello,  and  Dubuque  to  the  ferry  opposite  Prairie  du 
Chien.  The  commissioners  were  required  to  submit  a  report 


TRANSPORTATION  17 

in  which  was  to  be  included  an  estimate  of  the  probable  cost 
of  constructing  the  necessary  bridges  and  other  items  by 
them  deemed  pertinent.  This  report  was  to  be  filed  with 
the  clerk  of  the  district  court  for  the  counties  through  which 
the  road  passed,  and  these  counties  were  to  keep  the  road  in 
repair.^*^ 

At  the  next  session  of  the  Legislative  Assembly  of  the 
Territory  of  Wisconsin  a  general  law  prescribing  the  mode 
of  laying  out  and  marking  new  roads  was  enacted,  besides 
two  special  acts  establishing  Territorial  roads  in  the  Iowa 
country  and  an  act  providing  for  the  opening,  repairing,  or 
vacating  of  public  roads  and  highways.^^ 

After  the  organization  of  the  Territory  of  Iowa  in  July, 
1838,  the  matter  of  roads  received  more  serious  attention. 
Indeed,  when  Iowa  came  to  be  admitted  into  the  Union  in 
1846  the  settled  parts  of  the  State  were  covered  with  a  net- 
work of  highways  running  in  every  direction  and  connecting 
all  the  principal  towns.  That  roads  were  necessary  to  the 
development  of  the  country  was  recognized  from  the  time 
the  first  settlement  was  made ;  but  the  economic  importance 
of  permanent,  well  constructed  highways  was  not  seriously 
considered  in  this  State  until  comparatively  recent  years. 

During  the  early  years  of  the  Territorial  period  the  road 
laws  were  borrowed  largely  from  Wisconsin,  Michigan,  and 
Ohio.  Indeed,  the  Territory  of  Iowa  inherited  its  system  of 
road  and  bridge  administration  from  the  original  Territory 
of  Wisconsin,  where  the  county  was  recognized  as  the  im- 
portant unit  in  local  government.^^  Moreover,  it  appears 
that  road  legislation  in  Iowa  from  the  organization  of  the 
Territory  until  1900  consisted  largely  of  acts  having  to  do 
with  administration,  in  which  there  was  a  continual  see-saw 
between  the  principles  of  centralization  and  decentraliza- 
tion. 

In  his  first  annual  message  Governor  Eobert  Lucas  rec- 
ommended the  enactment  of  a  general  road  law  which  would 


18  ECONOMIC  LEGISLATION  IN  IOWA 

define  the  manner  of  laying  out  and  establishing  Territorial 
and  county  roads  and  provide  for  opening  and  keeping  them 
in  repair.^^  The  Legislative  Assembly  passed,  during  its 
first  session,  ''An  Act  to  provide  for  laying  out  and  opening 
Territorial  Eoads",  which  was  approved  on  December  29, 
1838,  and  which  was  almost  an  exact  copy  of  a  statute  of 
the  original  Territory  of  Wisconsin.  It  provided  that  com- 
missioners appointed  to  locate  roads  must  act  within  a  year 
after  the  road  was  authorized  and  file  correct  surveys  and 
plats  in  the  office  of  the  Secretary  of  the  Territory.  The 
counties  through  w^hich  the  roads  extended  w^ere  to  pay  all 
the  expenses.  The  width  of  roads  was  established  at  seventy 
feet.^*  Special  acts  authorizing  the  location  of  roads  were 
also  passed  during  this  first  session  of  the  Legislative  As- 
sembly. Approximately  two  hundred  similar  special  acts 
were  recorded  during  the  Territorial  period ;  and  for  a  num- 
ber of  years  after  Iowa  had  been  admitted  into  the  Union 
roads  were  provided  for  in  this  manner.^^  While  many 
roads  were  thus  authorized  it  is  probably  safe  to  say  that 
not  all  the  highways  named  in  the  statutes  were  laid  out. 
Only  a  few  were  kept  in  a  condition  to  be  used  throughout 
the  year. 

At  the  session  of  1839-1840  several  acts  having  to  do 
with  roads  were  passed.  A  law  providing  for  the  organiza- 
tion of  townships  contains  several  sections  relative  to 
township  roads;  and  another  act  "defining  the  duties  of 
supervisors  of  roads  and  highways"  required  all  able- 
bodied  men  between  the  ages  of  twenty-one  and  fifty  j^ears 
to  perform  three  days  work  on  the  public  roads  and  made 
provision  for  dividing  counties  and  townships  into  road 
districts.  An  important  step  was  taken  in  1842,  when  "An 
act  to  provide  for  levying  a  tax  on  real  and  personal  prop- 
erty for  road  purposes"  was  placed  upon  the  statute  books. 
The  tax  was  to  be  paid  in  cash  or  worked  out  on  the  roads, 
and    heavy    penalties    were    provided    for    delinquencies. 


TRANSPORTATION  19 

Abuses  having  developed  in  connection  with  the  laying  ont 
of  new  roads,  a  law  was  enacted  in  1842  requiring  that  appli- 
cations for  such  roads  must  be  signed  by  at  least  twenty 
legal  voters ;  and  the  county  commissioners  were  to  be  satis- 
fied that  the  roads  applied  for  were  necessary  and  required 
by  public  convenience.  Obstruction  of  public  roads,  or  in- 
jury to  roads,  streets,  or  bridges  was  made  a  finable 
offence.^*^ 

In  this  connection  some  mention  should  be  made  of  the 
interest  taken  by  Congress  in  encouraging  good  roads  in 
Iowa  during  the  Territorial  period  and  the  early  years  fol- 
lowing the  admission  of  the  State  into  the  Union.  Congress 
at  one  time  appropriated  $20,000,  and  at  other  times  author- 
ized the  expenditure  of  lesser  amounts  for  the  construction 
of  military  roads  in  the  Iowa  country.  And  it  is  recorded 
that  the  Legislative  Assembly  of  the  Territory  and  the  Gen- 
eral Assembly  of  the  State  passed  several  joint  resolutions 
and  memorials  asking  Congress  to  make  further  appropri- 
ations for  military  roads.^^ 

Graded  and  Plank  Roads: — From  the  admission  of  the 
State  into  the  Union  in  1846  to  the  codification  of  the  laws 
in  1851,  road  legislation  dealt  for  the  most  part  with  the 
establishment  of  graded  and  plank  roads.  Only  one  turn- 
pike road  had  been  authorized  during  the  Territorial  period, 
and  one  company  had  been  incorporated  to  construct  a 
canal,  railroad,  or  macadamized  toll  road;^*  but  in  the  early 
State  period  there  was  much  legislation  authorizing  the 
construction  of  plank  and  graded  toll  roads  and  granting 
the  right  of  way  to  such  companies.  Indeed,  thirteen  graded 
and  plank  roads  were  authorized  by  special  acts  of  the  State 
legislature  during  this  period.^^  The  provisions  of  these 
special  acts  were  very  similar.  Companies  were  incorpo- 
rated and  empowered  to  procure  a  right  of  way,  and  the 
county  commissioners  of  the  several  counties  through  which 


20  ECONOMIC  LEGISLATION  IN  IOWA 

the  roads  passed  were  authorized  to  determine  the  rates  of 
toll.  One  plank  road  was  authorized  after  1851 ;  and  by  an 
act  approved  on  March  26, 1862,  all  plank  roads  were  placed 
in  charge  of  the  board  of  supervisors,  whose  duty  it  was  to 
see  that  the  roads  were  kept  in  good  condition.  If  the  com- 
panies owning  the  roads  did  not  repair  them  after  being 
notified  of  the  need  the  licenses  were  to  be  revoked  and  the 
roads  opened  as  public  highways.^^ 

To  the  general  body  of  road  legislation  during  this  period 
little  was  added.  State  roads  continued  to  be  authorized  by 
special  acts  of  the  General  Assembly.^ ^  Sixty-seven  such 
special  acts  provided  for  the  location  of  one  hundred  and 
seventy-eight  State  roads  and  for  the  relocation  or  vacating 
of  fifteen  such  roads.  A  law  regulating  State  roads  was  en- 
acted and  soon  repealed.  The  Secretary  of  State  was  re- 
quired to  keep  a  record  of  all  such  roads.^^ 

Period  from  1851  to  1883: —  The  road  law  of  the  Code  of 
1851  was  systematic  and  arranged  in  logical  order.  Under 
its  provisions  administration  was  centralized  and  efficient ; 
the  importance  of  the  county  as  a  unit  of  local  government 
was  enlarged;  and  the  powers  formerly  exercised  by  the 
board  of  county  commissioners  were  placed  in  the  hands  of 
the  county  judge  who  was  made  the  accounting  officer  and 
general  agent  of  the  county.  From  July  1,  1851,  when  the 
Code  of  1851  went  into  effect  until  February  2,  1853,  when 
the  system  of  district  road  supervisors  was  established,  the 
administration  of  roads  and  bridges  was  highly  centralized, 
the  township  being  deprived  of  substantial  supervision  of 
highways  for  the  only  time  in  the  history  of  lowa.^^ 

The  centralized  system  provided  by  the  Code  of  1851 
was  logical  and  promised  efficiency;  but  centralization  was 
opposed  by  the  people  and  the  system  thus  established  re- 
mained in  force  less  than  two  years.  Decentralization  was 
restored  by  ''An  Act  providing  for  the  election  of  super- 


TRANSPORTATION  21 

^dsors  and  defining  their  duties ' ',  approved  on  January  22, 
1853.  By  the  provisions  of  this  act  townships  were  divided 
into  road  districts  and  resident  supervisors  were  to  be 
elected  annually  for  each  district,  the  office  of  county  road 
supervisor  being  abolished.^^  This  movement  was  decidedly 
away  from  administrative  efficiency,  in  that  districts  were 
reduced  in  size  and  the  appointive  principle  gave  way  to 
that  of  election.  Although  the  county  judge  system  of  road 
administration  was  not  abolished  until  July  4,  1860,  the 
authority  of  the  county  judges  over  roads  was  gradually 
diminished.  In  fact  this  whole  period  was  one  of  dissension 
between  the  adherents  of  centralized  administration  and  the 
advocates  of  decentralization,  in  which  the  principle  of  par- 
celing out  the  administration  into  small  local  units  gained 
in  favor.^^  The  policy  of  establishing  State  roads  by  special 
act  was  continued  until  the  practice  was  prohibited  by  the 
new  Constitution  of  1857,  which  also  prohibited  special 
legislation  for  the  assessment  and  collection  of  taxes  for 
State,  county,  or  road  purposes,  and  for  the  laying  out, 
opening,  and  working  of  roads  and  highways.'*'^ 

The  county  judge  system,  with  its  extreme  centralization, 
as  provided  for  in  the  Code  of  1851,  was  not  popular.  From 
the  day  of  its  establishment  there  had  been  more  or  less 
agitation  against  the  system.  By  "An  Act  creating  a 
County  Board  of  Supervisors,  defining  their  duties,  and  the 
duties  of  certain  County  Officers",  approved  on  March  22, 
1860,  this  form  of  county  government  was  abolished  and  a 
system  of  administrative  decentralization  adopted.^ ''^  The 
new  board  of  supervisors,  which  was  composed  of  one 
supervisor  elected  annually  from  each  civil  township,  was 
given  the  general  supervision  of  roads,  highways,  and 
bridges,  and  the  management  of  county  finances.*^ 

No  other  fundamental  changes  were  made  in  the  road 
laws  until  the  establishment  of  the  county  commissioner 
system  in  1870  under  the  old  name  of  a  board  of  supervisors. 


22  ECONOMIC  LEGISLATION  IN  IOWA 

This  law  definitely  abolished  the  township  system  of  repre- 
sentation and  was  in  fact  a  return  to  the  old  commissioner 
system  of  county  government  —  a  system  which  has  been 
retained  down  to  the  present  day. 

A  period  of  about  fourteen  years  now  passed  without 
important  changes  in  the  road  laws.  ^' While  little  of  a 
constructive  character  was  being  accomplished  during  this 
period  [1870-1884],  sentiment  was  gradually  being  crystal- 
lized in  favor  of  good  roads.  ""^^  The  General  Assembly  was 
petitioned;  Governor  Gear  made  favorable  recommenda- 
tions ;  and  bills  were  introduced  into  the  legislature  having 
for  their  object  the  improvement  of  the  highways.  The 
problem  of  road  administration  and  the  social  and  economic 
importance  of  good  roads  were  for  the  first  time  gaining 
recognition ;  but  nothing  was  accomplished  until  the  Twen- 
tieth General  Assembly  met  in  1884. 

During  this  period  legislation  was  scattered  and  planless ; 
a  change  was  made  from  the  supervisor  to  the  commis- 
sioner system  of  county  government;  a  separate  body  of 
bridge  laws  was  enacted  relative  to  bridge  funds;  the  re- 
sponsibility for  damages  sustained  as  a  result  of  unsafe 
bridges  was  fixed ;  and  a  change  was  made  in  the  manner  of 
distributing  road  taxes  between  cities  and  rural  districts. 
Provision  was  made  for  the  payment  of  a  part  of  the  prop- 
erty road  tax  in  money ;  and  the  unsatisfactory  experience 
with  the  small  road  district  indicated  the  desirability  of  a 
larger  unit  of  road  administration.  Finally,  the  county  was 
given  larger  powers  in  the  matter  of  finance.^^ 

A  review  of  road  legislation  before  1884  reveals  the  fact 
that  during  the  settlement  of  the  Territory  there  was  a  clear 
recognition  of  the  economic  and  political  importance  of 
roads.  Unable  to  build  a  system  of  highways,  the  people 
memorialized  Congress  time  after  time  to  aid  in  the  con- 
struction of  permanent  roads  and  bridges.  During  the  early 
State  period  it  was  recognized  that  good  roads  could  not  be 


TRANSPORTATION  23 

built  at  public  expense,  and  so  private  corporations  were 
encouraged  to  build  graded  and  plank  toll  roads  and  toll 
bridges.  These  were  to  serve  as  feeders  to  the  railroads 
which  were  then  being  introduced. 

The  control  of  an  economic  necessity,  such  as  transporta- 
tion facilities,  by  private  corporations  brought  before  the 
people  at  an  early  date  the  question  of  State  regulation  and 
State  control  of  quasi  public  utilities.  That  the  people  of 
Iowa  recognized  that  the  right  to  charter  corporations  to  do 
business  which  was  public  in  character  carried  with  it  the 
right  of  supervision  and  control  is  evidenced  by  the  provi- 
sions of  the  first  State  Constitution.  The  pioneers  held  that 
private  property  could  not  be  taken  for  private  use  even 
upon  the  payment  of  a  just  compensation.  Where  property 
was  so  taken  compensation  should  be  paid  and  the  right  of 
control  should  be  made  secure  to  the  public.  They  recog- 
nized also  that  a  corporation  might  be  private  from  the 
standpoint  of  ownership  and  management,  and  public  from 
the  standpoint  of  the  service  rendered.  The  strict  constitu- 
tional provisions  probably  retarded  to  some  extent  the 
economic  development  of  the  State  and  encouraged  the 
chartering  of  these  early  corporations  by  special  acts  rather 
than  under  a  general  law.  This  early  State  period  marks 
the  beginning  of  an  agitation  for  State  regulation  and  con- 
trol of  public  service  corporations  which  has  continued  to 
the  present  day  and  which  has  come  to  include  the  whole 
field  of  corporate  activity. 

Road  legislation  has  been  throughout  the  history  of  the 
State  so  inextricably  bound  up  with  local  administration 
that  it  can  not  be  considered  apart  from  such  administra- 
tion. By  the  Code  of  1851  local  administration  was  highly 
centralized  in  the  county  officers.  But  for  a  period  of  over 
thirty  years  after  1851  no  real  constructive  legislation  was 
enacted  for  the  purpose  of  procuring  for  the  inhabitants  of 
the  State  a  system  of  permanent  good  roads  over  which 


24  ECONOMIC  LEGISLATION  IN  IOWA 

produce  could  be  marketed  in  an  economical  manner  and 
marketed  at  the  time  when  it  would  command  the  highest 
price.  There  were  enough  road  laws  on  the  statute  books, 
and  the  amount  of  money  raised  by  taxes  to  be  expended  on 
the  roads  was  enormous;  but  the  small  district  plan,  al- 
though seeming  to  be  very  democratic,  was  inefficient  and 
wasteful.  The  road  supervisors  were  ignorant  of  the  best 
methods  of  road  construction,  and  tenure  in  office  was  un- 
certain. The  pajonent  of  taxes  in  labor  prevented  the  work- 
ing of  roads  during  the  most  favorable  time  of  the  year,  and 
the  problem  of  building  good  roads  out  of  the  available 
material  is  one  which  the  best  engineers  of  to-day  find  diffi- 
cult of  solution. 

Movement  for  Good  Roads: — Agitation  for  good  roads  in 
Iowa  was  seriously  begun  in  1883.  Indeed,  the  roads  of  the 
State  during  the  winter  of  1882-1883  had  been  almost  im- 
passable. The  Iowa  State  Register  published  a  progressive 
communication  entitled  Public  Highways  in  Iowa,  written 
by  Mr.  S.  D.  Pryce  of  Iowa  City,  in  which  the  road  question 
was  very  ably  discussed.  A  State  road  convention  was  held 
at  Iowa  City  in  March  of  the  same  year.  The  impassable 
condition  of  the  roads  brought  the  matter  of  their  improve- 
ment to  the  serious  attention  of  everyone  who  had  to  use 
them.  Mr.  Pryce 's  article  was  widely  copied  and  distrib- 
uted throughout  the  State,  while  the  State  road  convention 
adopted  a  series  of  very  progressive  resolutions,  among 
which  were  embodied  most  of  the  recommendations  which 
are  being  made  to-day  by  the  good  roads  propagandists.^^ 
The  campaign  for  good  roads  has  continued  since  1883,  and 
some  advance  toward  better  roads  has  been  made  —  espe- 
cially in  more  recent  years. 

The  General  Assembly  in  1884  enacted  one  very  impor- 
tant measure  on  the  subject  of  roads,  namely,  "AlH  Act  to 
Promote  the  Improvement  of  Highways".    This  act  pro- 


TRANSPORTATION  25 

vided  for  greater  administrative  centralization  in  tliat  it 
established  a  regular  county  road  fund  as  distinguished 
from  the  township  road  fund.    Boards  of  supervisors  were 
empowered  to  levy  a  tax  of  not  more  than  one  mill  on  the 
dollar  of  the  assessed  value  of  the  taxable  property  of  their 
county,  to  be  collected  as  other  county  taxes  and  set  aside 
as  a  county  road  fund  to  be  paid  out  only  upon  the  order  of 
the  board  of  supervisors  for  work  done  on  the  roads  of  the 
county  and  those  parts  of  the  road  designated  by  the  county 
supervisors,  who  were  also  to  determine  in  what  manner  the 
tax  should  be  expended.    Furthermore,  this  law  authorized 
the  township  trustees,  upon  the  petition  of  a  majority  of 
the  voters  of  the  township,  to  consolidate  the  various  road 
districts  of  a  township  into  one  district.  Where  this  optional 
system  was  put  into  effect  many  changes  were  brought  about 
in  township  administration.    The  township  trustees  could 
order  the  road  taxes  to  be  paid  in  money ;  they  could  direct 
the  expenditure  of  all  road  funds  of  the  township ;  and  they 
could  let  contracts  for  road  work  to  the  lowest  responsible 
bidder,  or  they  could  appoint  a  superintendent  of  roads 
with  as  many  assistants  as  necessary  to  superintend  the 
road  work  of  the  township.   After  two  years  the  township 
might,  if  it  wished,  return  to  the  old  system  of  small  road 
districts.^2  As  a  matter  of  fact  few  townships  availed  them- 
selves of  the  new  plan.    Not  until  the  Twenty-ninth  General 
Assembly  met  in  1902  was  there  any  additional  road  legis- 
lation of  importance. 

The  amendatory  and  fragmentary  legislation  dealing  with 
special  phases  of  the  road  and  bridge  question  enacted  dur- 
ing this  period  should  be  noted  as  indicating  a  recognition 
of  the  fact  that  the  question  of  road  administration  had  not 
been  solved.*'^^  One  encouraging  feature  of  the  situation  is 
the  fact  that  since  1884  the  question  of  good  roads  has  re- 
ceived serious  attention  from  newspapers,  farm  magazines, 
engineering  associations.  State  Governors,  and  good  roads 


26  ECONOMIC  LEGISLATION  IN  IOWA 

associations.  An  act  amending  the  important  act  of  1884 
for  the  improvement  of  highways  made  the  levy  of  a  tax  to 
be  used  as  a  county  road  fund  mandatory  upon  the  county 
boards  of  supervisors.  By  substituting ' '  shall ' '  for  * '  may '  * 
in  the  act  the  authority  of  the  county  in  road  administration 
was  increased.^^  In  speaking  of  the  Code  of  1897,  Mr.  John 
E.  Brindley  says  *'it  is  apparent  that,  aside  from  the  laws 
providing  for  the  optional  consolidation  of  road  districts 
on  the  township  basis  and  creating  a  county  road  fund,  no 
fundamental  changes  in  the  general  system  of  road  admin- 
istration were  made  between  1873  and  1896.  In  other 
words,  the  Code  of  1897,  viewed  from  the  standpoint  of 
road  and  bridge  legislation,  is  substantially  the  same  as  the 
Code  of  1873.  Numerous  mandatory  and  supplementary 
acts  of  a  somewhat  minor  character  were  passed ;  but  in  the 
final  analysis  the  power  and  authority  of  the  townships,  on 
the  one  hand,  and  of  the  county,  on  the  other,  remained 
practically  unchanged. ' '  ^^ 

The  State  Highway  Commission: —  Road  legislation  and 
administration  in  Iowa  since  1904  has  centered  in  the  State 
Highway  Commission  which  was  established  in  that  year. 
The  law  provided  that  the  Iowa  State  College  at  Ames 
should  act  as  a  highway  commission  for  Iowa  with  the  fol- 
lowing powers  and  duties : 

1.  To  devise  and  adopt  plans  and  systems  of  highway  construc- 
tion and  maintenance,  suited  to  the  needs  of  the  different  counties 
of  the  state,  and  conduct  demonstration  in  such  highway  construc- 
tion, at  least  one  [once]  each  year  at  some  suitable  place,  for  the 
instruction  of  county  supervisors,  township  trustees,  superin- 
tendents, students  of  the  college,  and  others. 

2.  To  disseminate  information  and  instruction  to  county  super- 
visors, and  other  highway  officers  who  make  request;  answer  in- 
quiries and  advise  such  supervisors  and  officers  on  questions 
pertaining  to  highway  improvements,  construction  and  maintenance, 


TRANSPORTATION  27 

and  whenever  the  board  of  supervisors  of  a  county  adjudge  that  the 
public  necessity  requires  a  public  demonstration  of  improved  high- 
way construction  or  maintenance  in  said  county,  and  so  request  and 
agree  to  furnish  necessary  tools,  help,  and  motor  power  for  same, 
the  commission  shall  furnish  as  soon  as  practicable  thereafter,  a 
trained  and  competent  highway  builder  for  such  demonstration  free 
to  the  county. 

3.  To  formulate  reasonable  conditions  and  regulations  for  public 
demonstrations;  and  to  promulgate  advisory  rules  and  regulations 
for  the  repair  and  maintenance  of  highways. 

4.  To  keep  a  record  of  all  the  important  operations  of  the  high- 
way commission,  and  report  same  to  the  governor  at  the  close  of 
each  fiscal  year.^® 

The  deans  of  the  division  of  agriculture  and  engineering 
were  appointed  to  serve  the  State  in  the  capacity  of  such  a 
commission;  and  in  spite  of  the  fact  that  no  financial  sup- 
port was  at  first  provided  for  the  commission  it  did  very- 
good  work.  This  brief  statute  of  1904  establishing  the  State 
Highway  Commission  marks  a  step  in  advance  in  road  legis- 
lation in  Iowa.  Since  that  date  the  good  roads  movement 
has  continued  to  grow. 

In  addition  to  the  legislation  of  1904  some  amendments  of 
minor  importance  were  made  to  the  general  body  of  road 
laws  by  the  Thirtieth  General  Assembly.  Little  was  accom- 
plished by  the  Thirty-first  General  Assembly  in  the  way  of 
road  legislation,  except  that  dragging  was  provided  for  and 
the  use  of  wide  tired  wagons  was  encouraged.  One  reaction- 
ary measure  provided  for  the  dividing  of  townships  into 
two  or  more  road  districts.  Several  special  and  amendatory 
acts  were  passed  in  1907.  In  1909  at  least  one  law  of  a  con- 
structive nature  was  enacted,  the  purpose  of  which  was  to 
promote  the  building  of  permanent  roads  in  the  State  and 
to  provide  for  the  establishment  of  road  improvement  dis- 
tricts.^^ 

Constructive  road  legislation  has  come  slowly  and  has 


28  ECONOMIC  LEGISLATION  IN  IOWA 

been  difficult  to  secure.  In  1911  about  fifty  bills  were  intro- 
duced —  some  carefully  drawn  up  and  wisely  planned  — 
but  the  more  progressive  measures  failed  to  pass.  The  drag 
law  was  greatly  improved,  however,  and  provision  was 
made  for  the  optional  emplojnnent  of  a  county  engineer  by 
the  county  boards  of  supervisors.  An  important  act  for  the 
regulation  of  motor  vehicles,  levying  license  fees,  and  pro- 
viding for  the  distribution  of  the  proceeds  of  these  fees  was 
also  passed.  A  yearly  registration  fee  of  fifteen  dollars  for 
any  electric  or  steam  motor  vehicle  and  an  annual  fee  of 
three  dollars  for  motor  bicycles  or  motorcycles  was  re- 
quired. Fifteen  per  cent  of  the  tax  was  to  be  retained  in  the 
State  treasury  and  eighty-five  per  cent  is  "apportioned 
among  the  several  counties  of  the  state  in  the  same  ratio  as 
the  number  of  townships  in  the  several  counties  bear  to  the 
total  number  of  townships  in  the  state  ".^^ 

The  constant  agitation  by  the  friends  of  the  good  roads 
movement  finally  resulted  in  constructive  legislation  in  1913. 
A  new  State  Highway  Commission  was  established  with  the 
following  powers  and  duties : 

1st.  To  devise  and  adopt  plans  of  highway  construction  and 
maintenance  suited  to  the  needs  of  the  different  counties  of  the 
state,  and  furnish  standard  plans  to  the  counties  in  accordance 
therewith. 

2d.  To  disseminate  information  and  instruction  to  county  super- 
visors and  other  highway  officers,  answer  inquiries  and  advise  such 
supervisors  and  officers  on  questions  pertaining  to  highway  im- 
provements, construction  and  maintenance  and  of  reasonable  prices 
for  materials  and  construction. 

3d.  To  keep  a  record  of  all  important  operations  of  the  highway 
commission  and  to  annually  report  the  same  to  the  governor  by  the 
first  day  of  December,  which  report  shall  be  printed  as  a  public 
document. 

4th.  To  appoint  such  assistants  as  are  necessary  to  carry  on  the 
work  of  the  commission,  define  the  duties  and  fix  the  compensation 


TRANSPORTATION  29 

of  each,  and  terminate  at  will  the  terms  of  employment  of  all  em- 
ployees; provide  for  necessary  bonds,  and  fix  the  amount  of  same. 

5th.  To  make  investigation  as  to  conditions  in  any  county,  and 
to  report  any  violation  of  duty,  either  of  commission  or  omission,  to 
the  attorney  general,  who  shall  take  such  steps  as  are  deemed  ad- 
visable by  him  to  correct  the  same. 

6th,  The  state  highway  commission  shall  have  general  super- 
vision of  the  various  county  and  township  officers  named  in  this  act 
in  the  performance  of  the  duties  here  enjoined,  and  shall  have  full 
power  and  authority  to  enforce  the  provisions  of  this  act. 

7th.    To  perform  all  other  duties  required  by  law.^^ 

The  new  commission  is  composed  of  three  salaried  mem- 
bers, one  of  whom  is  the  dean  of  engineering  at  the  Iowa 
State  College ;  while  the  other  two  members  are  appointive 
by  the  Governor  for  four  year  periods.  Eight  per  cent  of 
all  the  money  paid  into  the  State  treasury  for  the  registra- 
tion of  motor  vehicles  is  set  aside  to  constitute  a  main- 
tenance fund  for  the  commission. 

Furthermore,  the  board  of  supervisors  of  each  county  is 
now  required  to  employ  a  competent  engineer  or  engineers 
to  supervise  the  building  of  permanent  roads  in  the  several 
counties.  Provision  is  made  for  the  classification  of  roads 
into  county  road  systems  and  township  road  systems,  with 
constructive  plans  for  the  improvement  of  each.  The  State 
Highway  Commission  must  pass  upon  the  plans  for  perma- 
nent improvement.  It  also  furnishes  to  counties,  without 
cost,  standard  specifications  for  all  bridges  and  culverts. 
The  letting  of  contracts  for  bridge  and  culvert  construction 
is  regulated,  and  contracts  for  the  construction  of  any 
bridge,  culvert,  or  for  repairs  thereon,  exceeding  $2000  in 
cost  must  be  approved  by  the  commission.  By  the  same  leg- 
islation the  dragging  system  has  been  revised.  Township 
trustees  of  each  township  must  select  draggable  roads  from 
the  township  road  system  and  employ  a  superintendent  to 
supervise  the  dragging  of  roads  and  the  repair  of  the  roads, 
bridges,  and  culverts  of  the  township  system.^^ 


30  ECONOMIC  LEGISLATION  IN  IOWA 

The  legislation  of  1913  is  far  in  advance  of  any  previous 
road  legislation  in  the  State.  It  is  the  result  of  the  agitation 
for  good  roads  which  had  been  carried  on  so  persistently 
for  a  quarter  of  a  century.  Thus  the  economic  importance 
of  good  roads  is  beginning  to  be  much  more  clearly  recog- 
nized than  ever  before. 

The  important  amendatory  laws  passed  by  the  Thirty- 
fifth  General  Assembly  affected  the  motor  vehicle  regulation 
law;  improved  the  law  providing  for  the  destruction  of 
weeds  upon  the  highways;  and  apportioned  motor  vehicle 
fees.  Provision  was  made  by  new  laws  for  the  registration 
of  highway  routes  and  for  the  regulation  of  vehicles  meet- 
ing and  passing  on  the  public  highways.  The  Thirty-sixth 
General  Assembly  made  no  fundamental  changes  in  the  road 
laws  at  its  session  in  1915,  although  a  determined  effort  was 
made  to  change  radically  the  distribution  of  the  motor 
vehicle  fees.*^^ 

The  Thirty-seventh  General  Assembly  made  some  further 
advance  in  road  legislation.  In  addition  to  amendatory  acts 
of  a  minor  character,  among  which  were  provisions  in  re- 
gard to  the  oiling  of  roads,  the  width  of  roads,  the  cutting 
of  weeds,  notices,  poll  taxes,  volunteer  improvement  associ- 
ations, township  drag  funds,  obstructions,  and  the  appor- 
tionment of  the  motor  vehicle  fund,  three  more  important 
laws  were  passed.*^-  The  first  of  these  three  acts  makes  com- 
pulsory a  regular  county  tax  levy  for  road  grading  and 
building  purposes.*'^  The  second  establishes  a  patrol  system 
and  requires  the  county  boards  of  supervisors  to  employ 
road  patrolmen  who  shall  give  their  entire  time  to  road 
work  throughout  the  road  working  season  of  the  year  — 
from  early  spring  until  late  fall.  Each  patrolman  is  re- 
quired to  keep  his  own  section  of  the  road  in  proper  shape. °^ 
The  third  act  provided  for  the  acceptance  by  the  State  of 
the  provisions  of  the  Federal  Eoad  Aid  Act.^^ 

It  is  thought  that  the  acceptance  of  the  Federal  act  by  the 


TRANSPORTATION  31 

State  will  give  an  added  impetus  to  the  good  roads  move- 
ment. This  law,  which  was  enacted  by  Congress  in  1916, 
provides  for  the  distribution  of  $75,000,000  from  Federal 
funds  among  the  States  for  road  improvement  during  a 
five-year  period.  It  will  probably  mean  that  the  State  will 
receive  something  like  two  and  a  quarter  million  dollars 
during  the  five  years,  an  amount  which  seems  small  when 
compared  with  the  annual  expenditure  of  fourteen  millions 
for  road  purposes  in  the  State  at  the  present  time.  The 
benefit  which  this  State  hopes  to  derive  from  the  acceptance 
of  the  provisions  of  this  act,  however,  will  not  arise  so  much 
from  the  additional  funds  as  from  the  better  cooperation 
and  more  comprehensive  plans  which  promise  to  develop. 
The  State  act  accepting  the  provisions  of  the  Federal  law 
provides  for  the  expenditure  of  the  money  through  the  State 
Highway  Commission,  and  for  county.  State,  and  Federal 
cooperation  in  the  work.  If  a  five-year  building  program 
can  be  developed  and  the  road  system  of  the  State  be  organ- 
ized into  a  State-wide  unit  with  efficient  administration 
much  progress  will  have  been  made  and  the  State's  road 
problem  will  be  in  a  fair  way  to  solution. 

Notwithstanding  the  fact  that  there  has  been  a  constant 
struggle  between  progressive  and  reactionary  tendencies  in 
road  legislation  throughout  the  history  of  the  State,  the 
following  principles  are  now  generally  accepted:  there 
should  be  a  State-wide  plan  for  the  road  system  of  the 
State;  all  main  traveled  roads  should  be  patroled  and 
dragged  frequently;  roads  should  be  properly  drained  and 
hills  cut  down  to  the  lowest  practicable  grades ;  and  culverts 
and  bridges  should  be  properly  designed  and  permanently 
built.  Moreover,  it  is  being  more  widely  recognized  that  the 
county  is  the  political  unit  best  suited  to  carry  on  perma- 
nent road  improvements  under  present  conditions.  Under 
the  law  as  it  now  stands  rapid  progress  is  being  made  in  the 
improvement  of  the  highways  of  the  State. 


32  ECONOMIC  LEGISLATION  IN  IOWA 

EECAPITULATION 

A  careful  examination  of  Iowa  legislation  pertaining  to 
transportation  shows  that  it  has  had  a  very  uneven  develop- 
ment. There  was,  however,  a  clear  recognition  of  the  eco- 
nomic and  political  importance  of  means  of  transportation 
even  during  the  period  of  the  settlement  of  the  Iowa  coun- 
try. During  the  Territorial  period  and  later  in  the'^arly 
State  period  the  people  w^ere  unable  to  build  a  system  of 
roads  at  public  expense.  They  at  first  endeavored  to  secure 
aid  from  Congress,  but  much  assistance  could  not  be  ex- 
pected from  that  source.  Attention  was  later  turned  to  pri- 
vate corporations  which  were  encouraged  to  build  toll  roads 
and  bridges.  Such  roads  were  the  precursors  of  railroads, 
and  those  which- were  successfully  built  served  as  feeders 
for  railroads  after  the  latter  had  been  introduced. 

It  should  be  remembered  that  the  Territory  of  Iowa  in- 
herited its  system  of  local  government,  including  the  admin- 
istration of  roads  and  bridges,  from  the  original  Territory 
of  Wisconsin.  Moreover,  throughout  the  history  of  the 
State,  the  whole  body  of  road  legislation  has  been  so  in- 
extricably bound  up  with  local  administration  that  it  has 
been  almost  impossible  to  separate  the  two.  Centralized 
administration  of  the  road  laws  was  long  needed,  but  it  was 
successfully  opposed  by  those  who  favored  decentralization. 

It  is  true  that  local  administration  was  highly  centralized 
by  the  Code  of  1851,  but  the  system  was  retained  for  only  a 
few  years.  A  period  of  almost  thirty  years  then  followed 
during  which  no  real  constructive  legislation  was  enacted 
on  the  subject  of  roads  and  highways.  To  be  sure  some  leg- 
islation was  passed  during  this  period,  but  it  did  not  procure 
for  the  people  of  the  State  a  system  of  permanent  good 
roads  over  which  produce  could  be  cheaply  and  easily  hauled 
at  any  time. 

Throughout  the  State  period  enough  money  has  been  col- 
lected to  build  and  maintain  a  system  of  good  roads,  had  the 


TRANSPORTATION  33 

funds  been  spent  honestly  and  intelligently.  The  small  dis- 
trict system  of  road  administration,  however,  was  inefficient 
and  wasteful.  Eoad  supervisors  and  other  road  officers  were 
ignorant  of  the  best  methods  of  road  construction.  Tenure 
of  office  was  uncertain.  Taxes  were  paid  in  labor,  and  fre- 
quently at  the  time  of  year  when  the  work  would  do  the 
least  good.  The  materials  available  for  road  construction 
were  not  good.  Under  such  conditions  it  is  not  surprising 
that  good  roads  were  almost  unknown. 

A  good  roads  movement  was  launched  in  1884,  but  no  con- 
structive legislation  resulted  for  twenty  years.  The  agita- 
tion for  improvement  was  persistent,  however,  and  the  first 
State  Highway  Commission  was  established  in  1904.  Since 
that  date  constructive  road  legislation  has  been  enacted. 
The  State  Highway  Commission  was  reestablished  on  a 
better  basis  in  1913,  and  an  era  of  permanent  roads  is  being 
ushered  in.  Under  the  present  organization  there  are  many 
problems  that  face  the  counties  and  the  commission  in  build- 
ing an  adequate  system  of  highways  in  the  State.  Of  these 
problems  two  are  mentioned  by  the  commission  as  being 
difficult  of  solution,  namely,  the  problem  of  adequate  organ- 
ization—  how  to  secure  men  to  do  the  work  of  building 
roads,  culverts,  and  bridges  in  a  workmanlike  manner  — 
and  the  problem  of  securing  an  adequate  system  of  main- 
tenance.^*' 

The  road  laws  of  Iowa  are  the  result  of  a  struggle  be- 
tween progressive  and  reactionary  tendencies  which  has 
been  maintained  throughout  the  history  of  the  State.  The 
progressive  tendency  has  for  the  time  being  at  least  gained 
a  victory.  Years  of  agitation,  the  increased  use  of  the  auto- 
mobile, and  a  growing  appreciation  of  the  economic  impor- 
tance of  good  roads  are  responsible  for  the  progress  that 
has  been  made.  The  basic  road  law  of  to-day  is  the  law  that 
established  the  State  Highway  Commission.  It  provides  for 
a  system  of  more  centralized  control  over  road  and  bridge 


34  ECONOMIC  LEGISLATION  IN  IOWA 

construction  and  maintenance  than  the  State  has  had  since 
the  adoption  of  the  Code  of  1851.  Iowa  was  the  first  State  in 
the  Middle  West  to  establish  a  State-wide  system  of  main 
roads.  The  adherence  to  this  system  for  a  period  of  a  few 
years  will  give  the  State  a  network  of  permanent  good  roads 
that  will  be  of  the  greatest  utility  to  the  people  of  the  State. 


II 

RAILROAD  TRANSPORTATION 

PEKIOD  OF  AGITATION 

The  Constitution  of  1846  under  which  Iowa  was  admitted 
into  the  Union  contained  the  following  section : 

Corporations  shall  not  be  created  in  this  state  by  special  laws, 
except  for  political  or  municipal  purposes ;  but  the  general  assembly 
shall  provide  by  general  laws,  for  the  organization  of  all  other  cor- 
porations, except  corporations  with  banking  privileges,  the  creation 
of  which  is  prohibited.  The  stockholders  shall  be  subject  to  such 
liabilities  and  restrictions  as  shall  be  provided  by  law.  The  state 
shall  not  directly  or  indirectly  become  a  stockholder  in  any  cor- 
poration.^''' 

In  accordance  with  these  provisions  the  First  General 
Assembly  provided  *'that  any  number  of  persons  may  here- 
after incorporate  themselves  for  the  transaction  of  any 
business  which  may  be  the  lawful  subject  of  a  general 
partnership,  including  the  establishment  of  ferries,  the 
construction  of  railroads,  and  other  works  of  internal  im- 
provement."^^ The  regulations  and  restrictions  under 
which  corporations  were  allowed  are  fully  set  forth  in  the 
law. 

During  the  extra  session  in  1848  the  General  Assembly 
passed  ''An  Act  to  authorize  the  'Mississippi  Rapids  Rail- 
road Company'  to  acquire  a  right  of  way."  This  act  pro- 
vided that  ' '  whereas,  the  said  work  will  be  of  public  utility 
....  the  said  company  shall  not  be  able  to  acquire  the 
title  to  the  lands  through  which  the  said  railroad  shall  be 
laid,  by  purchase  or  voluntary  cession,  it  shall  be  lawful  for 
the  said  company  to  appropriate  so  much  of  said  land  as 

35 


36  ECONOMIC  LEGISLATION  IN  IOWA 

may  be  necessary  for  its  use,  for  the  purposes  contem- 
plated by  this  act,  on  conforming  with  the  following  pro- 
visions". The  company  was  required  to  petition  the  judge 
of  the  district  court,  who  would  appoint  a  day  of  hear- 
ing and  name  three  persons  to  appraise  the  damages  and 
report  thereon.  The  company  was  then  to  pay  the  damages 
so  assessed,  together  with  the  expense  of  the  assessment, 
and  be  given  possession  of  the  land  by  the  certificate  of  the 
judge.^^ 

The  people  of  the  new  State  were  clamoring  for  transpor- 
tation facilities,  and  the  railroads  promised  the  needed  re- 
lief. Since  such  roads  seemed  to  the  people  to  afford  the 
solution  of  their  most  serious  problem  everything  was  done 
to  encourage  the  rapid  introduction  of  this  new  and  better 
means  of  reaching  the  markets.  And  so  the  period  from 
1848  to  1860  was  one  of  railroad  enthusiasm,  financial  en- 
couragement, and  construction.  Railroads  were  demanded 
at  once  and  at  any  price.  As  a  matter  of  fact  they  did  not 
come  as  quickly  as  the  people  desired.  There  was  not  suf- 
ficient capital  in  the  new  State  to  finance  their  construction, 
and  the  capitalists  of  the  East  turned  to  the  new  States  only 
when  investments  there  promised  better  returns  than  in- 
vestments elsewhere.  Since  railroad  construction  in  the  new 
and  thinly  populated  States  was  something  of  a  venture, 
moneyed  men  hesitated  to  invest  in  the  enterprise. 

Every  inducement  was  held  out  by  the  people  and  many 
sacrifices  were  made  by  communities  in  order  to  encourage 
railroads.  Indeed,  the  liberality  of  the  people  knew  no 
bounds,  aid  being  extended  to  railroads  by  townships,  towns, 
counties.  State,  and  Nation.  Communities  and  individuals 
donated  money  and  lands.  Anxious  for  railroad  facilities, 
the  people  demanded  that  some  National  encouragement  be 
offered;  and  so  at  the  extra  session  of  the  First  General 
Assembly  memorials  and  joint  resolutions  were  adopted 
praying  Congress  to  grant  lands  to  aid  in  the  construction 


RAILROAD  TRANSPORTATION  37 

of  certain  railroads.  These  were  the  first  of  a  series  of  some 
twenty-five  joint  resolutions  and  memorials  which  were  sent 
to  Congress  praying  for  land  grants  to  aid  in  the  construc- 
tion of  railroads  in  lowa,'^*^  The  response  of  Congress  was 
generous. 

The  General  Assembly,  anxious  to  do  all  it  could  to  en- 
courage railroads,  passed  an  act  in  January,  1849,  referring 
to  the  memorial  to  Congress  asking  for  lands  and  stating 
that  it  was  reasonable  to  expect  that  the  land  would  be 
granted.  In  order  to  prevent  any  unnecessary  delay  three 
commissioners  were  appointed  to  select  and  locate  such 
lands  as  might  be  appropriated.'^^  Although  little  could  be 
done  by  the  first  four  General  Assemblies  for  the  further 
encouragement  of  railroads,  eight  special  acts  were  passed 
granting  the  right  of  way  to  as  many  companies  for  the 
construction  of  their  roads ;  and  in  1852  a  general  law  was 
enacted  regulating  the  manner  in  which  railroad  companies 
could  obtain  rights  of  way.'^^ 

These  regulations  and  provisions  were  in  accord  with 
those  embodied  in  the  Code  of  1851  relative  to  taking  pri- 
vate property  for  works  of  internal  improvement.'^^  A  right 
of  way  not  to  exceed  one  hundred  feet  in  width  could  be 
taken  by  purchase  with  the  owner's  consent,  or  without  the 
owner's  consent  upon  payment  of  damages.  Such  damages 
were  to  be  assessed  by  commissioners  appointed  for  that 
purpose  by  the  sheriff  of  the  county.  The  protection  of  the 
property  of  minors,  women,  and  non-residents  was  provided 
for;  and  the  crossing  of  roads  and  turnpikes,  canals,  and 
State  land  was  regulated.  For  damages  sustained  by  any 
person  in  consequence  of  any  neglect  in  observing  the  pro- 
visions of  the  act,  or  through  any  neglect  on  the  part  of 
their  agents  the  companies  were  liable. 

The  first  survey  for  a  railroad  in  the  State  of  Iowa  was 
made  in  the  fall  of  1852 ;  and  on  December  22, 1852,  the  Mis- 
sissippi and  Missouri  Railroad  Company  was  formed  for 


38  ECONOMIC  LEGISLATION  IN  IOWA 

the  purpose  of  constructing  a  railroad  from  Davenport  to 
Council  Bluffs.  In  1848  a  preliminary  survey  had  been  made 
for  a  proposed  railroad  from  Keokuk  to  Dubuque,  but  this 
road  was  not  built.  The  Rock  Island  and  La  Salle  Railroad 
Company  was  authorized  to  build  a  depot  in  Davenport,  and 
the  use  of  Centre  Market  Square  in  Iowa  City  was  granted 
to  the  Davenport  and  Iowa  City  Railroad  Company  in 
1851.7^ 

TAX  AID  TO  EAILROADS 

During  the  years  when  railroads  were  first  being  built  in 
Iowa  public  opinion  was  in  their  favor.  Every  inducement 
was  held  out  to  them,  and  heavy  sacrifices  were  made  by 
communities  in  order  to  aid  in  their  construction.  Com- 
munities were  allowed  to  tax  themselves  heavily  for  the 
benefit  of  the  new  enterprises.  Moreover,  special  acts  were 
passed  authorizing  certain  towns  and  counties  to  subscribe 
to  the  capital  stock  of  railroad  corporations  and  to  issue 
bonds  to  pay  for  this  stock.  Such  action  could  be  taken  only 
after  the  question  had  been  submitted  to  a  vote  of  the  elec- 
tors and  a  majority  of  the  votes  had  been  cast  in  favor  of 
the  proposition.  During  the  regular  session  of  the  Sixth 
General  Assembly  three  special  acts  authorized  Lee  County 
to  vote  bonds  to  the  extent  of  $450,000 ;  while  two  other  acts 
authorized  Keokuk  in  the  same  county  to  vote  $300,000  in 
the  aid  of  railroads.  This  made  a  total  of  $750,000  author- 
ized for  a  population  which  was  still  less  than  thirty  thou- 
sand in  1860."^^ 

Many  acts  of  this  nature  were  passed,  but  by  a  law  of  the 
Eighth  General  Assembly  counties  and  incorporated  cities 
and  towns  were  prohibited  from  subscribing  for  stock  in 
railroads  and  other  works  of  internal  improvements.'^'^  In 
1868,  however,  ''An  Act  to  enable  Townships  and  Incor- 
porated Towns  and  Cities  to  aid  in  the  Construction  of 
Railroads"  was  placed  upon  the  statute  books. "^^    By  its 


RAILROAD  TRANSPORTATION  39 

provision  the  local  political  divisions  named  were  given 
authority  to  levy  a  tax,  not  to  exceed  five  per  cent  upon  the 
assessed  value  of  the  property,  to  aid  in  the  construction  of 
railroads.  Such  a  levy  could  be  made  only  under  certain 
conditions.  One-third  of  the  resident  taxpayers  must  sign  a 
petition  for  a  vote  on  the  question,  which  was  then  sub- 
mitted to  the  people;  and  if  a  majority  of  those  voting 
favored  the  levy  it  could  be  made.  Such  a  tax  was  to  be  col- 
lected in  the  same  manner  as  other  taxes  and  paid  over  to 
the  railroad  company  in  whose  favor  it  had  been  voted. 

At  the  next  session  of  the  General  Assembly  the  law  of 
1868  was  changed  by  the  addition  of  a  section  which  pro- 
vided that  ''all  railroads  constructed  by  or  with  the  aid  of 
any  taxes  levied  and  collected  under  the  provisions  of  this 
act,  shall  be  subject  to  the  control  of  the  General  Assembly 
in  regard  to  the  management  of  the  same  and  the  charges 
for  the  transportation  of  freight  and  passengers  thereon.  "^^ 
All  the  laws  permitting  local  taxation  for  the  aid  of  rail- 
roads were  repealed  in  1872.  Amendatory  acts  were  con- 
tinued, however,  and  in  1876  a  new  law  enabled  townships 
and  incorporated  towns  or  cities  to  aid  in  the  construction 
of  railroads.  A  petition  must  be  signed  by  a  majority  of  the 
taxpayers,  and  two-thirds  of  those  voting  had  to  approve  of 
the  proposition  before  any  aid  could  be  given.  Later  a  sim- 
ple majority  was  made  sufficient,  and  political  subdivisions 
were  again  allowed  to  issue  bonds.  Railroads  were  required 
to  comply  with  the  provisions  of  the  grant  or  forfeit  the  aid 
thus  provided.  It  was  further  provided  that  they  were  to 
forfeit  the  tax  if  they  failed  to  collect  it  within  six  months. 
In  1884  these  laws  were  repealed  and  a  substitute  enacted 
in  their  place.  The  new  law  contained,  in  addition  to  the 
provisions  of  the  former  acts,  a  clause  providing  that  per- 
sons paying  such  a  tax  could,  in  an  indirect  manner,  obtain 
an  equal  amount  of  railroad  stock. 

The  legal  bonded  indebtedness  of  railroads  was  raised 


40  ECONOMIC  LEGISLATION  IN  IOWA 

from  $16,000  to  $18,500  per  mile  in  1890.  In  1902  the  provi- 
sions of  the  then  existing  laws  were  made  applicable  to 
trolley  and  electric  railways  —  that  is,  taxes  might  be  voted 
to  either  steam  or  electric  roads,  but  not  to  both.  In  1913 
the  number  of  required  signers  of  petitions  in  cities  was 
decreased.  Moreover,  the  owners  of  benefited  property,  that 
is,  territory  contiguous  to  the  proposed  line  of  road  irre- 
spective of  political  division,  were  permitted  to  vote  for  the 
levy  of  taxes  to  aid  in  the  construction  of  electric  roads.'^^ 

LAND  GRANTS  TO  RAILROADS 

Congress  early  assumed  the  policy  of  making  grants  to 
the  frontier  States  to  be  used  by  them  to  aid  in  the  construc- 
tion of  railroads.  The  first  grant  made  to  the  State  of  Iowa 
for  this  purpose  was  through  an  act  approved  on  May  15, 
1856,  to  aid  in  the  construction  of  four  railroads  across  the 
State,  from  the  Mississippi  River  on  the  east  to  the  Mis- 
souri River  on  the  west.  It  was  a  grant,  in  trust,  to  the  State 
for  the  one  purpose  named  in  the  act  and  comprised  every 
alternate  section  for  six  sections  in  width  on  each  side  of 
the  proposed  roads.  Railroads  so  benefited  were  to  remain 
public  highways  for  the  use  of  the  United  States  free  from 
toll  or  charge  for  the  transportation  of  property  or  troops, 
and  they  were  to  carry  mail  upon  such  terms  as  Congress 
should  direct.^*^ 

This  grant  was  accepted  by  the  State  of  Iowa  by  an  act  of 
the  General  Assembly  passed  at  the  special  session  in  1856, 
under  the  terms,  conditions,  and  restrictions  contained  in 
the  act  of  Congress.  By  the  same  law  the  lands  thus 
accepted  were  granted  to  the  following  four  railroad  com- 
panies under  certain  conditions  and  restrictions :  the 
Burlington  and  Missouri  River  Railroad  Company,  the  Mis- 
sissippi and  Missouri  Railroad  Company,  the  Iowa  Central 
Air  Line  Railroad  Company,  and  the  Dubuque  and  Sioux 
City  and  Tete  des  Morts  Branch  Railroad  Company.    These 


RAILROAD  TRANSPORTATION  41 

companies  were  required  to  complete  seventy-five  miles  of 
their  respective  roads  within  three  years  from  December  1, 
1856,  and  to  complete  thirty  additional  miles  per  year  for  a 
period  of  five  years.  The  whole  line  of  each  road  was  to  be 
completed  by  December  1,  1865.  Upon  the  failure  of  any 
company  to  comply  with  these  requirements  the  lands 
granted  to  it  were  to  revert  to  the  State.  Specific  provisions 
defined  the  gauge,  style  of  road,  and  duties  of  the  several 
companies  relative  to  crossings,  turnouts,  sidings,  and 
switches.  Valid  claimants  were  protected  in  their  rights  to 
lands ;  and  each  company  was  required  to  file  its  assent  to 
and  acceptance  of  the  conditions  in  the  office  of  the  Secre- 
tary of  State.  Furthermore,  it  should  be  noted  that  this 
first  act  provided  that  each  of  these  railroad  companies  was 
to  be  at  all  times  subject  to  the  rules  and  regulations  pre- 
scribed, or  to  be  prescribed  by  the  legislature,  and  each  was 
required  to  make  an  annual  report,  a  copy  of  which  was  to 
be  filed  with  the  Secretary  of  State.^^ 

The  four  companies  above  named  accepted  the  grant  on 
the  conditions  and  restrictions  specified  in  the  act.  The 
Iowa  Central  Air  Line  Railroad  Company,  however,  failed 
to  comply  with  the  requirements,  and  the  General  Assembly 
withdrew  the  lands  and  regranted  them  to  the  Cedar  Rapids 
and  Missouri  Railroad  Company  in  1860.^-  The  companies 
were  authorized  to  make  disposition  of  the  lands  granted  to 
them,  by  mortgage  or  deed  of  trust,  for  the  purpose  of  se- 
curing the  necessary  amount  of  construction  bonds  to  com- 
plete their  respective  roads.^^  The  Mississippi  and  Missouri 
Railroad  had  completed  its  line  from  Davenport  to  Iowa 
City  before  the  first  land  grant  was  made,  consequently  the 
land  on  that  portion  of  the  line  was  a  simple  donation. 
Extension  of  time  for  completing  the  various  roads  was 
allowed. 

During  this  same  period  the  Des  Moines  River  Improve- 
ment was  giving  more  and  more  trouble.    The  contractors 


42  ECONOMIC  LEGISLATION  IN  IOWA 

were  not  complying  with  agreements  and  the  Commissioner 
was  unable  to  satisfy  the  people;  high  water  had  retarded 
the  work,  and  the  introduction  of  railroads  made  the  project 
seem  less  important.  A  settlement  was  therefore  made  with 
the  old  De  Moine  Navigation  and  Railroad  Company,  and  in 
1858  the  remainder  of  the  land  granted  for  the  Des  Moines 
River  Improvement  was  disposed  of  to  the  Keokuk,  Fort 
Des  Moines  and  Minnesota  Railroad  Company,  and  provi- 
sion was  made  for  the  winding  up  of  the  business  of  the 
Des  Moines  River  Improvement  project.*^  No  attempt  will 
be  made  in  this  connection  to  follow  all  the  grants,  resump- 
tions, and  changes  that  were  made. 

The  wisdom  of  granting  lands  to  railroads  has  often  been 
questioned.  There  is  much  reason  to  believe  that  in  Iowa 
the  promoters  of  the  railroads  profited  more  than  did  the 
State.  After  the  grants  were  made  the  companies  were  slow 
in  complying  with  the  conditions  and  an  extension  of  time 
was  always  asked.  The  companies  were  anxious  to  hold  the 
valuable  lands  and  at  the  same  time  build  their  roads  only 
so  fast  as  increased  population  promised  to  make  them  im- 
mediate dividend-paying  investments.  The  Chicago,  Iowa, 
and  Nebraska  Railroad,  which  was  built  with  private  capital 
exclusively,  was  a  paying  investment;  and  Mr.  William 
Larrabee  says  that  ''it  is  more  than  probable  that  this  road 
would  at  an  early  day  have  been  completed  to  the  Missouri 
River,  had  it  not  feared  the  rivalry  of  the  subsidized  Cedar 
Rapids  and  Missouri  road."*^ 

Congress  granted  to  the  State  of  Iowa  for  railroad  pur- 
poses a  total  of  more  than  four  million  acres  of  land  — 
almost  one-eighth  of  the  total  acreage  of  the  State.^°  These 
lands  sold  on  the  average  for  about  five  dollars  per  acre. 
It  is  estimated  that,  including  the  taxes  voted  for  railroads 
by  counties,  townships,  and  municipalities,  grants  of  rights 
of  way  and  depot  sites,  and  public  and  private  gifts  in 
money,  the  railroads  in  Iowa  have  received  subsidies 
amounting  to  more  than  $50,000,000.^''^ 


RAILROAD  TRANSPORTATION  43 

Legislation  relative  to  land  grants  and  the  settlement  of 
claims  has  continued  down  to  the  present  time.  Congress 
passed  eighteen  separate  acts  and  joint  resolutions  relative 
to  railroad  land  grants  and  the  settlement  of  the  same  in 
Iowa,  while  the  General  Assembly  of  the  State  passed  thirty 
separate  acts.*^  One  cause  for  the  tardy  settlement  of  the 
railroad  land  question  in  Iowa  was  the  fact  that  railroad 
grants,  swamp  land  grants,  and  the  Des  Moines  River  Im- 
provement grant  overlapped  to  a  certain  extent.  Moreover, 
pioneers  had  settled  on  the  lands  and  had  valid  claims  to 
their  homes.  Much  litigation  and  legislation  was  necessary 
in  order  to  clear  up  the  whole  matter.^^ 

EAILKOAD  REGULATION 

Regulation  Before  1873: — The  period  from  1853  to  the 
beginning  of  the  Civil  War  was  one  of  planning  and  build- 
ing for  railroads  in  Iowa.  All  legislation  looked  toward  the 
encouragement  of  railroad  construction ;  investment  in  rail- 
road property  was  endorsed.  A  new  and  growing  com- 
munity was  struggling  for  railroad  facilities  and  keenly 
appreciated  their  necessity  in  the  development  and  growth 
of  the  State.  During  the  war  little  or  no  advance  was  made 
in  railroad  building ;  but  at  its  close,  the  progress  was  very 
marked. 

The  problem  of  railroad  control  does  not  seem  to  have 
been  discussed  during  this  period;  and  yet  from  the  very 
beginning  of  railroad  construction  the  principle  of  State 
control  had  been  recognized.  In  the  act  of  1856  accepting 
the  railroad  land  grant  from  the  United  States  the  follow- 
ing provision  appears :  "Said  Rail  Road  Companies,  accept- 
ing the  provisions  of  this  act,  shall  at  all  times  be  subject  to 
such  rules  and  regulations  as  may  from  time  to  time  be 
enacted  and  provided  for  by  the  General  Assembly  of 
Iowa '  '.^^  And  this  same  provision  is  found  in  all  subsequent 
acts  granting  lands  to  railroads  in  Iowa. 


44  ECONOMIC  LEGISLATION  IN  IOWA 

At  the  close  of  the  war  railroad  construction  was  pushed 
with  great  ^dgor:  lines  were  completed  and  systems  ar- 
ranged. But  it  was  not  long  before  abuses  arose  and  dis- 
satisfaction with  railroad  management  was  manifest.  The 
great  struggle  for  the  extension  of  railroads  throughout  the 
State  was  followed  by  a  still  greater  struggle  for  their  con- 
troL  Eailroad  companies  were  charged  with  discrimination 
and  extortion,  and  the  power  of  the  State  to  control  them 
became  a  subject  for  heated  discussion.  "The  country  was 
new  and  the  situation  poorly  understood  both  by  railroad 
officials  and  the  public.  In  railroad  circles  the  old  idea  of 
vested  rights  under  the  charters  and  grants  was  the  con- 
trolling idea.  They  were  accustomed  to  look  upon  the  rail- 
roads from  a  purely  proprietary  standpoint.  The  property, 
it  was  claimed,  belonged  to  the  stockholders,  and  the  public 
had  nothing  to  do  but  pay  the  rates  established,  and  take  the 
accommodation  furnished,  as  the  sole  consideration  should 
be  profit  to  the  owners."®^ 

From  year  to  year  the  situation  grew  worse.  Although  a 
mass  of  legislation  relative  to  railroads  was  enacted  it  was 
not  of  a  character  to  relieve  the  shipper.  Railroad  com- 
panies of  the  State  were  early  authorized  to  consolidate 
their  stock  with  the  stock  of  other  railroad  companies,  and 
to  connect  their  roads  with  such  other  roads.  They  could 
also  make  such  contracts  and  agreements  as  might  be  de- 
sirable with  such  roads  relative  to  the  transportation  of 
freight  or  passengers,  or  for  the  use  of  their  roads.^^ 

It  was  freely  admitted  that  this  privilege  of  consolidation 
was  the  best  thing  that  could  happen  from  the  standpoint  of 
the  railroads  and  for  the  development  of  an  efficient  system 
of  transportation.  But  the  plan  was  one-sided.  While  the 
railroad  corporations  were  given  a  free  hand  in  the  regula- 
tion of  their  own  affairs  the  shipper  had  no  recourse.  Com- 
panies were  empowered  to  mortgage  the  whole  or  any  part 
of  their  property  to  raise  money  for  construction  and  equip- 


RAILROAD  TRANSPORTATION  45 

ment,    and   certain   roads    were    authorized    to    construct 
bridges  over  the  Mississippi  River.^^ 

Many  amendatory  acts  and  special  laws  were  enacted 
prior  to  1860.  In  1858  the  provision  of  the  Code  of  1851 
making  the  individual  property  of  all  stockholders  of  a  cor- 
poration liable  for  the  corporate  debts  was  made  inapplica- 
ble to  railroad  corporations.^"*  Congress  was  memorialized 
to  favor  the  construction  of  a  transcontinental  line  and  to 
repeal  the  duty  on  railroad  iron ;  and  measures  were  passed 
to  protect  railroad  property  and  to  prevent  the  placing  of 
obstructions  upon  railroad  tracks.^ ^ 

Two  special  acts  might  be  mentioned  in  this  connection  as 
indicating  a  tendency  on  the  part  of  the  General  Assembly 
to  regulate  railroads.  In  one  of  these  acts  it  was  provided 
that  two  of  the  trustees  of  the  Dubuque  and  Pacific  Railroad 
Company  should  reside  within  the  State ;  and  the  denomina- 
tion of  the  construction  bonds  issued  by  the  company  could 
not  be  less  than  fifty  dollars.  In  the  other  act  the  Keokuk, 
Fort  Des  Moines  and  Minnesota  Railroad  was  prohibited 
from  issuing  additional  mortgages  without  the  consent  of 
the  first  mortgage  holders,  nor  was  the  amount  issued  to 
exceed  $15,000  per  mile  under  any  condition.^ *^ 

Railroad  companies  in  Iowa  were  early  obliged  to  permit 
other  roads  to  make  track  connections  and  to  haul  the  cars 
of  such  other  roads  at  reasonable  rates.  The  offices  of  secre- 
tary, treasurer  or  assistant  treasurer,  and  general  superin- 
tendent of  every  railroad  organized  under  Iowa  laws  must 
be  kept  in  Iowa ;  and  an  annual  report  was  required  of  all 
railroads  in  the  State.  During  the  same  year  (1862)  an 
attempt  was  made  to  secure  the  publicity  of  rates.  Railroad 
companies  were  allowed  to  issue  construction  and  equip- 
ment bonds,  to  issue  preferred  stock,  and  to  change  the  com- 
pany name.  Railroad  bridges  across  the  Mississippi  and 
Missouri  rivers  were  authorized,  and  the  construction  and 
operation  of  railroads  in  the  State  was  encouraged  in  other 


46  ECONOMIC  LEGISLATION  IN  IOWA 

ways.  The  liability  of  railroads  as  common  carriers  was 
defined :  contracts  would  not  exempt  carriers  from  liability. 
Railroads  were  also  made  liable  for  injuries  to  live-stock 
and  for  damages  to  baggage ;  and  the  duties  and  liabilities 
imposed  upon  the  companies  by  law  were  made  equally 
applicable  to  lessees.  Some  special  laws  were  enacted;  and 
Congress  was  asked  to  compel  the  Union  Pacific  Railroad 
Company  to  fulfill  its  contracts. 

At  the  adjourned  session  of  the  General  Assembly  in  1873 
Congress  was  asked  to  correct  the  abuses  arising  out  of 
exorbitant  interstate  railroad  rates,  and  an  appropriation 
of  $1000  was  made  to  enable  the  Governor  to  procure  sta- 
tistics on  the  subject  of  transportation.  The  roads  were 
required  to  fix  maximum  rates  for  passengers  and  freight  in 
June  of  each  year  and  to  post  the  same  in  the  depots.  They 
were  made  liable  for  the  wilful  wrongs  of  their  agents  and 
employees;  and  provision  was  made  to  punish  companies 
for  violation  of  the  criminal  laws.  Railroads  were  also  de- 
clared liable  for  damages  by  fire  set  or  caused  by  them.  The 
pooling  of  earnings  by  parallel  railroads  was  prohibited  by 
the  Code  of  1873,  which  also  fixed  the  maximum  fare  for 
passengers  at  three  and  one-half  cents  per  mile.^^ 

The  Granger  Law: — The  belief  that  railroad  companies 
were  charging  unreasonable  rates  and  making  unfair  dis- 
criminations had  been  growing  for  some  time.  It  is  not 
surprising,  therefore,  to  find  that  when  the  Fifteenth  Gen- 
eral Assembly  convened  in  1874  it  was  with  the  expectation 
that  a  radical  railroad  law  would  be  enacted.  Abundant 
crops,  extraordinarily  low  prices  for  products,  and  a  dis- 
turbed state  of  mind  upon  currency  and  financial  questions 
generally,  all  served  to  intensify  dissatisfaction  among  the 
farmers.  The  expected  legislation  took  the  form  of  a  maxi- 
mum rate  law  and  was  entitled  *'An  Act  to  Establish  Rea- 
sonable Maximum  Rates  of  Charges  for  the  Transportation 


RAILROAD  TRANSPORTATION  47 

of  Freight  and  Passengers  on  the  Different  Railroads  of  this 
State '  '.^^  This  act,  which  came  to  be  known  as  the  ' '  Granger 
Law",  classified  railroads  according  to  their  gross  earnings 
per  mile  within  the  State  for  the  preceding  year.  Class  ' '  A" 
included  all  railroads  whose  gross  earnings  per  mile  were 
$4000  or  more;  class  ^'B"  included  roads  whose  gross  earn- 
ings were  $3000  or  any  sum  less  than  $4000;  and  class  "C" 
included  roads  whose  gross  earnings  were  less  than  $3000. 
For  passenger  transportation,  roads  in  class  '*A"  were 
allowed  to  charge  three  cents  per  mile;  those  in  class  '*B", 
three  and  one-half  cents  per  mile;  and  those  in  class  ''C", 
four  cents  per  mile.  A  detailed  schedule  of  rates  for  trans- 
porting freight,  goods,  and  merchandise  for  every  mile  from 
one  up  to  three  hundred  and  seventy-six  was  included  in  the 
statute.  This  was  followed  by  a  classification  of  goods. 
Class  *'A"  railroads  could  charge  ninety  per  cent  of  the 
scheduled  rates;  class  "B"  railroads  could  charge  one  hun- 
dred and  five  per  cent  of  the  scheduled  rates ;  and  class  "  C  " 
railroads  could  charge  one  hundred  and  twenty  per  cent  of 
the  scheduled  rates. 

Each  company  was  required  to  prepare  a  true  copy  of  the 
classification  and  its  rates  under  the  law  for  each  of  its 
freight  and  passenger  offices;  and  each  company  was  re- 
quired under  penalty  to  make  an  annual  statement  to  the 
Governor  of  its  gross  receipts  upon  the  entire  road  within 
the  State.  Discrimination  was  prohibited;  and  penalties 
for  violation  of  the  act  were  prescribed.  The  law  took  ef- 
fect on  July  4,  1874.  It  prescribed  rates,  classifications, 
penalties  and  punishments,  and  punitive  damages. 

The  act  did  not  aim  to  interfere  in  any  way  with  compe- 
tition. But  the  railroads  maintained  that  the  law  reduced 
the  rates  to  so  low  an  average  that  business  could  not  be 
done  on  a  profitable  basis.  What  the  law  really  did  was  to 
equalize  rates,  making  the  average  higher  than  it  had  been 
under  the  discriminating  charges  formerly  established  by 


48  ECONOMIC  LEGISLATION  IN  IOWA 

the  railroads.  The  companies,  with  one  or  two  exceptions, 
endeavored  to  obey  the  law ;  but  they  did  so  under  protest. 
The  validity  of  the  law  was  tested  and  upheld  in  the  courts. 
Indeed,  the  Granger  cases  established  the  doctrine  that 
States  may  regulate  intra-state  commerce,  and  in  so  doing 
may  fix  maximum  rates. 

Owing  to  the  opposition  of  the  railroads  and  the  lack  of 
proper  administrative  machinery  for  effective  control,  the 
Granger  Law  was  not  successful  in  its  operation.  The  im- 
pression came  to  prevail  that  the  law  was  too  rigid  and  did 
not  allow  the  railroads  sufficient  freedom  of  action.  More- 
over, it  was  charged  that  the  law  was  a  check  on  railroad 
building  and  prevented  efficient  operation.  And  so  in  1878 
the  act  of  1874  was  repealed.^^ 

Amendatory  and  special  acts  of  more  or  less  importance 
continued  to  be  enacted  during  the  four  years  while  the 
Granger  Law  was  in  force.  Among  these  were  laws  per- 
taining to  the  following  subjects:  compensation  for  inju- 
ries; connecting  lines;  the  issue  of  preferred  stock  for 
bonded  indebtedness ;  crossings ;  the  abandonment  of  rights 
of  w^ay ;  contracts  for  the  use  of  bridges ;  the  construction  of 
railroads  on  public  ways;  convenient  offices;  relocation  of 
roads ;  interference  with  railroad  property ;  the  contents  of 
reports ;  the  taking  of  private  property ;  the  transportation 
of  game;  tracks  in  streets;  and  the  extension  of  foreign 
roads.  At  the  same  time  an  appeal  was  made  to  Congress 
to  regulate  freight  rates  and  passenger  fares,  to  grant  re- 
lief to  certain  settlers,  and  to  compel  certain  roads  to  do 
specific  acts.^^*^ 

The  Railroad  Commission: —  At  the  time  of  the  repeal  of 
the  Granger  legislation  the  necessity  for  railroad  regulation 
was  recognized,  but  there  was  much  difference  of  opinion  as 
to  the  manner  in  which  control  should  be  administered. 
The  law  of  1878  which  established  a  Board  of  Railroad  Com- 


EAILROAD  TRANSPORTATION  49 

missioners  repealed  all  portions  of  the  maximum  rate  law 
of  1874  —  except  that  section  which  provided  for  the  classi- 
fication of  railroads  according  to  their  earnings  per  mile, 
fixed  the  rates  for  passenger  fares,  and  required  an  annual 
report  of  gross  earnings.  It  provided  for  the  appointment 
by  the  Governor,  with  the  advice  of  the  Executive  Council, 
of  three  commissioners,  one  of  whom  should  be  a  civil  engi- 
neer. The  commissioners  were  to  hold  office  for  three  years, 
one  member  retiring  each  year.  This  board  was  to  have 
general  supervision  of  all  railroads  operated  in  the  State  as 
far  as  the  safety  and  convenience  of  the  public  was  con- 
cerned. It  was  the  duty  of  the  commissioners  to  inquire 
into  every  neglect  or  violation  of  the  laws  by  railroad  com- 
panies or  their  employees,  and  to  inform  themselves  as  to 
the  condition  of  the  roadbed,  bridges,  equipment,  and  man- 
agement of  the  railroads.  They  could  call  to  the  attention 
of  the  companies  any  change  in  the  method  of  operating  the 
roads  or  of  conducting  their  business  which,  in  the  judg- 
ment of  the  commissioners,  was  reasonable  and  expedient 
in  order  to  promote  the  safety  and  convenience  of  the 
public.  ^^^ 

Annual  reports  containing  statistics  of  the  railroads  were 
to  be  submitted  to  the  Grovernor.  These  reports  were  to 
contain  information  relative  to  the  cost  of  the  road  and 
equipment,  the  amount  of  land  grants,  capital  stock,  and  the 
like.  These  reports  were  required  to  be  made  in  accordance 
with  a  prescribed  form.  The  commissioners  were  author- 
ized to  examine  the  books  of  any  company,  to  examine  offi- 
cers under  oath,  and  to  subpoena  witnesses.  Railroad  com- 
panies were  required  to  furnish  suitable  cars  for  all 
purposes,  and  to  transport  freight  with  reasonable  dispatch, 
to  receive  empty  or  loaded  cars  of  connecting  roads,  and  to 
charge  no  more  for  the  service  than  other  connecting  roads 
were  charged.  Discrimination  and  unreasonable  charges 
were  prohibited.^*^^    Advisory  power  only  was  vested  in  the 


50  ECONOMIC  LEGISLATION  IN  IOWA 

commission,  that  is,  no  authority  was  granted  to  enforce  its 
decrees.  Violation  of  its  orders  were,  however,  to  be  re- 
ported to  the  legislature  and  publicity  was  depended  upon 
to  make  the  recommendations  of  the  commission  effective. 
The  law  remained  in  force  for  a  period  of  ten  years,  during 
which  time  it  appears  that  railroad  construction  was  car- 
ried on  very  rapidly. ^^^ 

Railroad  regulation  and  control  have  been  very  closely 
bound  up  with  the  Board  of  Eailroad  Commissioners  since 
its  establishment  in  1878.  For  ten  years  this  board  was  an 
advisory  or  ''weak"  commission.  Since  1888  it  has  been  a 
"strong"  commission  with  mandatory  powers.  The  weak 
commission  was  remarkably  successful  in  settling  questions 
of  minor  importance ;  and  in  a  few  instances  it  succeeded  in 
adjusting  matters  of  great  significance.  It  failed,  however, 
where  control  was  most  needed:  it  could  not  prevent  dis- 
crimination. Consequently  there  was  much  dissatisfaction 
with  its  work.  In  1884  the  board  was  given  some  additional 
power :  actions  against  railroad  companies  could  be  brought 
in  the  name  of  the  State  upon  recommendation  of  the  board 
and  in  this  manner  its  decrees  could  be  enforced  by  the 
courts. ^^^ 

Discrimination  and  abuses,  however,  were  not  eliminated ; 
and  so  there  w^as  an  increasing  demand  for  more  equitable 
rates  and  a  more  thorough  control  of  the  railroad  business. 
In  the  political  campaign  of  1887  the  main  issue  was  State 
control  of  railroads.  Both  of  the  great  political  parties 
declared  themselves  in  favor  of  legislation  which  would 
secure  such  control.  Governor  Larrabee  in  his  first  biennial 
message  of  January  11, 1888,  advocated  the  entire  abolition 
of  the  pass  system,  the  establishment  of  passenger  rates  by 
law,  the  requirement  of  safety  appliances,  the  strict  regula- 
tion of  Sunday  trains,  the  election  of  the  commissioners, 
and  the  payment  by  the  State  of  the  salaries  of  the  com- 
missioners.^^^ 


RAILROAD  TRANSPORTATION  51 

Eesponding  to  the  public  demand  the  General  Assembly 
at  its  session  in  1888  passed  an  act  to  regulate  railroad  cor- 
porations and  other  common  carriers,  to  increase  the  power 
and  further  define  the  duties  of  the  Railroad  Commission- 
ers, and  to  prevent  and  punish  extortion  and  unjust  dis- 
crimination in  the  rates  of  charges  for  transportation.^^^ 
This  law  defined  the  term  railroad  to  include  all  bridges  and 
ferries  used  in  connection  with  any  railroad,  also  all  rail- 
roads operated  in  connection  with  any  railroad,  whether 
under  contract,  agreement,  lease,  or  otherwise.  It  made  the 
term  transportation  include  all  instrumentalities  of  ship- 
ment or  carriage.  It  defined  railroad  corporations  to  mean 
all  corporations,  companies,  or  individuals  owning  or  oper- 
ating railroads  in  the  State.  The  law  was  further  made  to 
apply  to  all  persons,  firms,  companies,  or  associations, 
whether  incorporated  or  not,  that  might  do  business  as 
common  carriers  upon  the  railways  of  the  State. 

The  act  defined  unjust  discrimination  and  required  that 
all  charges  should  be  reasonable  and  just.  It  prohibited 
special  rates,  rebates,  and  drawbacks,  but  recognized  the 
classification  of  goods  and  also  permitted  a  lower  rate  per 
hundred  pounds  in  carload  than  in  less  than  carload  lots. 
It  made  unlawful  the  giving  of  preferences  to  persons,  firms, 
corporations,  localities,  or  any  description  of  traffic,  except 
as  to  time  of  shipment  of  live-stock  or  perishable  property. 
It  required  equal  facilities  for  the  interchange  of  traffic  be- 
tween the  respective  lines,  and  for  the  receiving,  forward- 
ing, and  switching  of  cars.  The  Railroad  Commissioners 
might  require  any  common  carrier  to  switch  and  transfer 
cars  for  another  road  for  the  purpose  of  being  loaded  or 
unloaded. 

Again,  the  law  made  the  carload  the  unit  in  large  ship- 
ments and  the  hundred  pounds  the  unit  in  smaller  than  car- 
load shipments.  The  rate  on  one  carload  must  be  as  low  as 
that  per  car  on  any  number  of  cars,  and  as  low  on  one  hun- 


52  ECONOMIC  LEGISLATION  IN  IOWA 

dred  pounds  as  that  charged  per  hundred  pounds  on  any 
number  until  a  carload  was  reached. 

The  law  prohibited  any  railroad  company  from  charging 
a  higher  rate  for  a  shorter  than  for  a  longer  distance  over 
its  railroad  (which  included  any  branch  that  it  might  oper- 
ate), any  part  of  the  short  haul  being  included  within  the 
longer.  Charges  for  transporting  freight  from  any  given 
point  must  not  be  more  than  a  fair  and  just  rate  as  com- 
pared with  charges  from  any  other  point.  Pooling,  whether 
of  rates  or  carriage,  was  prohibited.  Schedules  of  rates 
must  be  printed  and  posted.  Carriage  of  freight  must  be 
continuous  from  the  place  of  shipment  to  its  destination. 

Any  person  injured  as  the  result  of  a  violation  of  the  law 
might  make  complaint  to  the  commissioners  or  bring  suit  in 
the  courts  of  the  State.  Moreover,  the  commissioners  were 
given  power  to  inquire  into  the  management  of  the  business 
of  carriers ;  and  all  contracts,  agreements,  or  documents  of 
any  kind  must  be  produced  when  called  for. 

By  this  same  act  of  1888  the  Board  of  Eailroad  Commis- 
sioners was  required  to  make  a  classification  and  schedule 
of  reasonable  maximum  rates  which  should  be  taken  in  the 
courts  of  the  State  as  prima  facie  examples  of  reasonable 
and  just  rates.  Complaints  were  to  be  made  to  the  board, 
and  it  was  the  duty  of  the  board  to  fix  the  time  and  place  for 
hearings.  The  rate  per  hundred  pounds  must  be  the  same 
for  like  classes  of  freight  for  like  distances  to  all  persons 
shipping  in  quantities  less  than  carload  lots;  and  the  rate 
per  hundred  for  all  persons  shipping  in  carload  lots  must  be 
the  same  for  the  same  distances  for  the  same  class  of 
freight.  For  violations  of  the  provisions  of  the  law  severe 
penalties  were  provided.  Some  passes  were  allowed  to  spe- 
cial classes  of  persons ;  and  for  the  development  of  any  new 
industry,  special  rates  were  permitted  for  an  agreed  num- 
ber of  cars,  when  approved  by  the  commissioners. 

Under  this  new  law  the  Eailroad  Commissioners  were 


RAILROAD  TRANSPORTATION  53 

made  elective.  Many  features  of  the  act  were  taken  from 
the  former  law  and  from  the  Interstate  Conmierce  Act 
passed  by  Congress  in  1887.  The  law  was  stringent  in  its 
provisions  and  was  fought  by  the  railroads.  Having  been 
tested  in  the  courts  and  declared  valid  this  statute,  with 
some  modifications,  still  constitutes  the  basis  of  railroad 
control  in  the  State  of  Iowa;  and  the  work  of  the  Board  of 
Eailroad  Commissioners,  which  has  been  given  additional 
powers  from  time  to  time,  has  been  as  successful  as  that  of 
any  railroad  commission  in  the  United  States. 

It  has  been  noted  that  in  1884  the  Board  of  Railroad  Com- 
missioners was  given  some  additional  power  in  the  matter 
of  enforcing  its  decisions  and  that  in  1888  really  large  pow- 
ers were  conferred  upon  it.  In  addition  to  all  this,  the  com- 
missioners were  empowered  to  require  railroad  companies 
to  build  stations  at  the  intersection  of  railroads  when  the 
commissioners  deemed  such  stations  to  be  necessary.  More- 
over, the  commissioners  were  given  power  to  require  such 
information  as  they  deemed  necessary  and  reasonable  to  be 
included  in  the  reports  made  to  them  by  common  carriers. 
In  1890  they  were  empowered  to  make  maximum  joint  rates 
for  the  transportation  of  freight  and  cars  over  two  or  more 
lines  of  railroad  within  the  State.  These  rates  were  to  be 
reasonable  and  just.  The  board  was  also  given  authority 
to  require  any  railroad  in  the  State  to  improve  its  roadbed, 
bridges,  crossings,  or  stations,  change  its  rate  of  fare  for 
transportation  of  passengers  or  freight,  or  change  the  mode 
of  operating  the  road  or  of  conducting  its  business.  It  was 
given  the  further  power  to  investigate  interstate  freight 
rates  and  to  appeal  to  the  Interstate  Commerce  Commission 
when  discrimination  was  discovered.  The  Attorney  Gen- 
eral was  required  to  assist  the  board  in  its  work.  Further- 
more, the  board  has  power  to  prescribe  the  manner  of 
stringing  wire  for  the  transmission  of  electric  current.  It 
investigates  accidents  on  railways,  prescribes  the  speed  of 


54  ECONOMIC  LEGISLATION  IN  IOWA 

stock  trains,  supervises  express  companies,  and  regulates 
the  issue  of  preferred  stock. ^^'^ 

Provision  was  made  in  1909  for  the  stricter  enforcement 
of  the  orders  of  the  board;  and  in  1911  the  office  of  Com- 
merce Counsel  was  established.  The  Commerce  Counsel  is 
appointed  by  the  Board  of  Railroad  Commissioners,  subject 
to  the  approval  of  two-thirds  of  the  members  of  the  Senate 
in  executive  session.  The  term  of  appointment  is  for  four 
years  at  an  annual  salary  of  $5000.  It  is  the  duty  of  the 
Commerce  Counsel  to  investigate  the  reasonableness  of 
rates  charged  by  all  parties  or  corporations  subject  to  the 
jurisdiction  of  the  Board  of  Railroad  Commissioners.  He 
must  also  investigate  the  reasonableness  of  interstate  rates. 
He  is  to  assist  the  Board  of  Railroad  Commissioners  and 
prosecute  cases  before  them,  to  act  as  their  legal  adviser, 
and  to  act  as  attorney  for  and  represent  the  board  in  all  of 
the  courts  of  the  State  or  of  the  United  States  in  which  the 
validity  of  any  order  of  the  board  is  at  issue.^*^® 

The  commissioners  were  given  increased  power  in  estab- 
lishing switching  rates  in  1911.  Substantial  appropriations 
have  been  made  from  time  to  time  to  be  expended  by  the 
board  in  preparing  cases  submitted  to  the  Interstate  Com- 
merce Commission.  The  agitation  for  the  safe  operation  of 
railroads  led  to  legislation  authorizing  the  commissioners 
to  make  orders  prescribing  safety  appliances  on  trains  and 
requiring  sanitary  conditions  at  stations.  Moreover,  in 
1913  the  commissioners  were  given  power  to  grant  fran- 
chises for  the  establishment  of  lines  for  the  transmission  of 
electric  currents. 

Although  railroad  legislation  since  1878  has  centered 
about  the  powers  and  duties  of  the  Board  of  Railroad  Com- 
missioners many  laws  have  been  enacted,  some  of  which  are 
of  great  importance,  which  have  not  directly  affected  the 
duties  of  the  commissioners.  For  example  there  has  been 
legislation  upon  the  following  subjects :  changing  the  names 


RAILROAD  TRANSPORTATION  55 

of  stations;  fencing  the  right  of  way;  depot  grounds;  the 
crossing  of  highways  and  streets;  drains  across  the  right 
of  way;  and  the  taking  of  private  property  for  rights  of 
way.  Furthermore,  scores  of  miscellaneous  and  special 
laws  have  been  placed  upon  the  statute  books.  A  series  of 
acts  finally  did  away  with  the  free  pass  system.  An  even 
more  important  group  of  laws  provided  for  safety  appli- 
ances, such  as  automatic  couplers,  power  brakes,  and  the 
like.  Railroad  employees  were  given  some  measure  of 
protection  by  a  group  of  labor  laws,  the  most  important  of 
which  are  those  limiting  the  continuous  service  of  oper- 
atives to  sixteen  hours,  prohibiting  the  blacklisting  of  em- 
ployees by  railroads,  providing  that  contributory  negli- 
gence should  not  be  a  bar  to  recovery  of  work  accidents,  and 
setting  aside  the  old  assumption  of  risk  theory  and  the  fel- 
low servant  doctrine.  Interurban  railways  come  under  the 
same  regulatory  laws  as  steam  roads.  Some  important  leg- 
islation has  been  enacted  relative  to  the  indebtedness  of 
railroad  companies ;  by  law  they  are  allowed  to  hold  securi- 
ties of  other  roads  and  may  mortgage  their  own  property, 
and  in  general  they  are  given  a  fairly  free  hand  in  the  man- 
agement and  control  of  their  own  financial  affairs. ^^^ 

In  1907  there  was  enacted  the  so-called  two-cent  fare  law, 
which  cut  down  the  passenger  rate  one  cent  per  mile  on  each 
class  of  roads.  Eoads  in  class  **A"  may  now  charge  two 
cents  per  mile;  those  in  class  ''B"  may  charge  two  and  one- 
half  cents  per  mile;  while  those  in  class  "C"  may  charge 
three  cents  per  mile.  The  classification  is  based  on  gross 
earnings.^^*'  In  1915  switching  service  was  redefined,  and 
semi-monthly  payment  of  wages  to  employees  was  required 
of  railroad  corporations.  The  rights  and  duties  of  inter- 
urban railroads  were  defined,  and  the  Board  of  Railroad 
Commissioners  was  given  some  new  duties  in  connection 
with  these  roads.  Amendatory  acts  and  new  laws  of  some 
importance  were  passed  by  the  Thirty-seventh  General  As- 


56  ECONOMIC  LEGISLATION  IN  IOWA 

sembly  in  1917  but  no  change  of  policy  was  made.  The  new 
laws  enacted  are  simply  additions  and  amendments  which 
experience  has  indicated  would  serve  to  improve  the  law 
without  substantially  changing  it.^^^ 

TAXATION  OF  EAILEOADS 

During  the  early  years  of  railroad  construction  the  sub- 
ject of  railroad  taxation  received  little  consideration.  The 
amount  of  revenue  needed  to  carry  on  the  ordinary  business 
of  government  was  comparatively  small  and  the  general  tax 
rate  was  very  low.  Railroads  were  demanded  at  any  cost, 
and  there  was  little  thought  either  of  their  taxation  or  of 
their  control.  There  was  no  special  law  for  the  taxation  of 
railroads :  they  were  taxed  in  the  same  manner  as  other 
corporations,  that  is,  through  the  shares  of  stock  in  the 
hands  of  the  individual  stockholders.  The  law  for  the  tax- 
ation of  corporations  clearly  provided  that  the  property  of 
corporations  was  to  be  reached  through  the  shares  of  stock, 
and  provision  was  made  for  reaching  non-resident  stock- 
holders ;  but  no  method  was  provided  for  the  distribution  of 
the  tax  among  the  several  counties  in  which  the  corporation 
operated.^^^ 

The  first  law  with  special  reference  to  railroad  taxation 
in  Iowa  was  enacted  by  the  Seventh  General  Assembly. 
This  law  did  not  change  the  general  method  of  taxing  the 
roads,  but  it  did  provide  for  the  distribution  of  the  tax 
among  the  counties  in  which  the  road  was  located.  The  tax 
was  to  be  divided  among  the  several  counties  in  proportion 
to  the  amount  of  such  improvement  situated  in  the  respec- 
tive counties. ^^^ 

In  the  course  of  time  a  separate  method  of  taxing  railroad 
corporations  was  found  to  be  necessary  in  order  that  the 
State  might  be  able  to  meet  the  extraordinary  expenses  due 
to  the  Civil  War.  The  gross  receipts  law  of  1862  resulted 
from  this  necessity.    Revenue  was  the  one  important  con- 


RAILROAD  TRANSPORTATION  57 

sideration  in  the  enactment  of  this  statute.  Each  railroad 
was  required  annually  to  furnish  the  State  Treasurer  with 
a  sworn  statement  of  its  gross  receipts,  without  reduction 
for  expenses  for  the  year  ending  on  the  first  day  of  January 
preceding.  The  State  Treasurer  then  levied,  on  such  gross 
receipts,  a  tax  of  one  per  cent  which  the  railroads  were  re- 
quired to  pay  before  February  15th.  One-half  of  the  tax 
thus  collected  was  apportioned  among  the  several  counties 
through  which  the  road  passed,  in  proportion  to  the  number 
of  miles  of  main  track  in  each  county.  The  other  one-half 
was  turned  into  the  State  treasury.  This  tax  was  in  lieu  of 
all  other  taxes  on  that  part  of  the  property  necessary  for 
the  operation  of  the  roads. ^^^  The  law  remained  in  force 
until  after  the  close  of  the  Civil  War,  when  the  attitude  of 
the  people  toward  the  railroads  underwent  some  change.  A 
slight  modification  was  made  by  the  act  of  1868;^^^  but  in 
1870  a  law  was  enacted  which,  while  it  retained  the  gross 
receipts  system,  made  the  system  progressive.  The  rate 
increased  from  one  to  three  per  cent,  depending  on  the  earn- 
ings of  the  road.  Only  one-fifth  of  the  tax  remained  in  the 
State  treasury,  the  other  four-fifths  being  apportioned 
among  the  several  counties  in  proportion  to  the  number  of 
miles  of  track  in  each  county.^^^ 

The  forces  which  demanded  the  regulation  and  just  taxa- 
tion of  railroads  continued  to  operate ;  but  there  was  much 
confusion  in  the  minds  of  the  legislators  as  to  what  should 
be  done.  The  demand  for  local  taxation  was  becoming  gen- 
eral, but  the  idea  of  local  assessment  was  opposed.  Finally, 
it  appeared  that  State  assessment  coupled  with  local  taxa- 
tion, worked  out  on  an  ad  valorem  basis,  was  the  best 
solution.  The  law  enacted  in  1872  provided  for  an  ad 
valorem  system  of  railway  taxation  with  unitary  valuation. 
State  assessment  by  the  Census  Board,  and  pro  rata  mileage 
distribution.^"  The  Executive  Council  makes  the  assess- 
ment ;  and  gross  receipts  form  the  chief  basis  of  valuation. 


58  ECONOMIC  LEGISLATION  IN  IOWA 

Railroad  property  is  valued  on  a  unitary  plan;  but  termi- 
nals are  not  valued  in  the  cities,  their  value  being  spread 
over  the  entire  railway  division.  Cities  are  unable  to  tax 
depots,  machine  shops,  sidetracks,  and  the  like.  They  may 
levy  municipal  rates  only  upon  the  pro  rata  valuation  of 
main  track.  Mr.  John  E.  Brindley,  in  his  History  of  Taxa- 
tion in  Iowa,  sums  up  the  law  in  these  words : 

Under  the  provisions  of  the  law  of  1872,  briefly  stated,  the  State 
receives  its  rate  on  the  total  valuation  within  its  borders ;  the  county 
receives  the  usual  county  rate  on  its  mileage  valuation ;  and  the 
same  is  true  of  the  lesser  taxing  districts.  The  method  of  levy  and 
collection  is  the  same  as  for  the  general  property  tax ;  and  it  departs 
from  the  ordinary  rules  of  such  tax  only  in  the  method  of  deter- 
mining and  distributing  the  valuation  of  the  respective  lines  of 
road.iis 

Some  minor  changes  have  been  made  in  the  act  of  1872, 
but  the  underlying  principle  of  law  for  the  taxation  of  rail- 
roads in  this  State  remains  substantially  the  same  as  when 
enacted  over  forty  years  ago.  The  Executive  Council  — 
made  up  of  the  Governor,  the  Secretary  of  State,  the  Audi- 
tor, and  the  Treasurer,  three  of  whom  constitute  a  quorum 
—  replaced  the  Census  Board  in  1873  and  took  over  the 
duties  of  the  Census  Board  relative  to  the  assessment  of 
railways.  In  1878  a  law  provided  for  an  additional  state- 
ment from  railroad  companies  relative  to  sleeping  and 
dining  cars  used  by  them.  Provision  was  made  for  deter- 
mining the  value  of  such  cars  and  for  the  levy  of  taxes  on 
them.  Minor  changes  were  made  in  1900  in  the  statement 
required  from  railroads  showing  the  daily  average  sleeping 
and  dining  car  service  on  their  lines. 

In  1902  the  time  of  making  reports  was  changed  and  the 
character  of  the  reports  required  to  be  made  by  railroad 
companies  for  assessment  purposes  was  also  modified.  At 
this  same  session  **An  Act  defining  and  providing  for  the 
taxation  of  freight  line  and  equipment  companies"  was 


RAILROAD  TRANSPORTATION  59 

passed.  The  act  dealing  with  the  reports  required  of  rail- 
road companies  defined  a  method  of  ascertaining  gross 
earnings,  prescribed  uniform  regulations  in  regard  to  net 
earnings,  and  required  that  these  reports  on  net  and  gross 
earnings  should  be  in  addition  to  reports  already  required 
by  law.  Freight  line  and  equipment  companies  were  clearly 
defi.ned  and  complete  statements  to  the  Executive  Council 
were  required.  A  few  other  minor  amendatory  acts  have 
been  passed,  but  no  important  change  has  been  made  in  the 
mode  of  railroad  taxation  since  1872. ^^^  The  only  advance 
has  been  in  requiring  the  railroads  to  make  more  elaborate 
reports  to  the  Executive  Council.  The  method  of  tax  distri- 
bution remains  the  same  and  the  assessment  is  made  by  an 
ex  officio  body. 

OTHER  COMMON  CARBIEES 

Legislation  having  to  do  with  common  carriers  other  than 
railroad  corporations  —  such  as  express  companies,  tele- 
graph and  telephone  companies,  fast  freight  companies,  and 
the  like  —  has  been  closely  interwoven  with  railway  legis- 
lation. Some  important  regulatory  legislation  has  been  en- 
acted and  schemes  for  taxing  such  companies  have  been 
devised. 

The  first  law  affecting  carriers  directly  was  *'An  Act  for 
the  relief  of  certain  carriers",  approved  on  January  13, 
1840.  This  act  provided  that  carriers  working  on  request 
or  under  agreement  in  carrying  goods  might  retain  the 
goods  carried  until  payment  for  the  carriage  should  be 
made.^2^  In  1858  ''An  Act  to  regulate  the  sale  of  unclaimed 
goods,  in  the  possession  of  Forwarding  and  Commission 
Merchants,  Express  Companies,  and  other  common  car- 
riers" was  passed.  This  was  a  long  and  detailed  statute 
providing  for  the  disposal  of  unclaimed  goods.^^^  Frag- 
mentary legislation  of  a  regulatory  character  has  been  en- 
acted from  that  time  to  the  present  day.    Acts  to  prevent 


60  ECONOMIC  LEGISLATION  IN  IOWA 

frauds,  to  regulate  the  disposal  of  unclaimed  goods,  to  make 
common  carriers  liable  for  damage  to  baggage  through 
careless  handling,  to  prevent  carriers  from  limiting  their 
liability  as  common  carriers  by  contracts,  and  to  determine 
where  actions  against  common  carriers  should  be  brought 
have  been  placed  upon  the  statute  books.^-^ 

With  special  reference  to  express  companies  a  similar 
group  of  laws  has  been  enacted.  For  example,  such  com- 
panies are  required  to  keep  offices  at  convenient  points; 
they  are  liable  for  damage  to  baggage ;  they  are  liable  for 
bringing  liquor  into  the  State ;  and  they  must  not  carry  low 
ignition  point  oils.^-^  The  laws  of  1888  for  the  regulation 
of  railroads  and  other  common  carriers  and  to  increase  the 
power  of  the  Board  of  Eailroad  Commissioners  includes 
express  companies  within  its  scope ;  accordingly  these  com- 
panies have  been  under  the  supervision  of  the  Railroad 
Commissioners  since  that  date.^^^  In  1896  ''An  Act  declar- 
ing express  companies,  operating  and  doing  business  in  this 
state,  common  carriers,  and  providing  for  their  regulation 
and  control  by  the  railroad  commissioners"  placed  them 
definitely  under  the  board's  control.^-^  Provision  was  made 
for  punishing  the  unlawful  breaking  and  entering  of  a  rail- 
road or  express  car,  and  in  1907  express  companies  were 
again  specifically  declared  to  be  common  carriers  and  sub- 
ject to  regulations  prescribed  for  railroad  companies,  rela- 
tive to  reasonable  rates.  Excessive  rates  were  prohibited. 
A  few  other  statutes  of  minor  importance  have  been  en- 
acted.^2^ 

The  taxation  of  express  companies  has  been  a  difficult 
problem  upon  which  there  has  been  considerable  legislation. 
During  the  Territorial  period  and  in  the  early  State  period 
express  companies  were  taxed  under  the  general  property 
tax.  Later  they  were  taxed  through  the  shares  of  the  stock- 
holders. The  first  law  for  the  special  purpose  of  taxing 
express  companies  was  enacted  in  1868  and  was  entitled 


RAILROAD  TRANSPORTATION  61 

*'An  Act  in  relation  to  Eevenue  and  Taxing  the  Property  of 
Express  Companies  and  Telegraph  Companies."  This 
statute  provided  for  the  taxation  of  express  companies  on 
their  personal  property,  which  was  arbitrarily  fixed  at  forty 
per  cent  of  their  gross  receipts. 

In  1870  express  companies  were  again  made  taxable 
under  a  general  property  tax  law  which  continued  in  force 
until  1896,  when  the  system  was  modified  by  an  act  which 
provided  for  a  tax  of  one  dollar  on  every  hundred  dollars 
of  gross  receipts.  Two  years  later  this  rate  was  doubled. 
The  whole  system  of  taxing  express  companies  was  again 
changed  by  the  Twenty-eighth  General  Assembly.  Such 
companies,  under  the  law  of  1900  and  the  amendments  which 
have  been  made  to  it,  are  assessed  upon  their  property,  in- 
cluding their  shares  of  stock,  by  a  unit  rule.  This  assess- 
ment is  apportioned  among  the  counties  and  townships  on  a 
mileage  basis.  The  Executive  Council  also  assesses  freight 
lines  and  equipment  companies  on  the  cars  necessarily  used 
in  their  business  in  the  State,  and  they  are  taxed  at  the 
average  rate  of  State  and  local  taxation.^-"^ 

The  Code  of  1851  provided  that  any  person  or  company 
might  build  a  telegraph  line  along  any  public  road  of  the 
State  and  across  rivers  and  lands  belonging  to  the  State  or 
to  private  individuals.  The  fixtures  were  not  to  incommode 
the  public,  and  damages  were  to  be  paid  to  parties  over 
whose  land  the  line  was  constructed.  The  proprietor  of 
such  a  line  was  required  to  receive  and  despatch  messages 
without  unreasonable  delay.  He  was  prohibited  from  re- 
vealing the  contents  of  messages,  and  was  liable  for  all  mis- 
takes in  transmitting  messages  made  by  any  person  in  his 
employ.  He  was  liable  for  all  damages  resulting  from  his 
failure  to  perform  any  other  duty  required  by  law.  In  gen- 
eral the  laws  in  this  State  relating  to  telegraphs  and  tele- 
phones are  similar  to  those  relating  to  express  companies. 
The  Code  of  1873  contained  one  or  two  minor  changes  in  the 


62  ECONOMIC  LEGISLATION  IN  IOWA 

telegraph  law.    Telegraph  companies  were  required  to  keep 

offices  at  convenient  points.     In  1882  telephone  companies 

were  granted  the  same  privileges  in  the  matter  of  right  of 

way  as  telegraph  companies  had  enjoyed.     Certain  cities 

have  been  given  power  to  regulate  the  stringing  of  wires. 

The  tapping  of  telephone  wires  and  malicious  injury  to  the 

property  of  telegraph  and  telephone  companies  are  pro- 
hibited.128 

The  taxation  of  telegraph  and  telephone  companies  has 
presented  to  the  General  Assembly  a  problem  similar  to 
that  of  taxing  express  companies.  Before  1868  telegraph 
companies  were  included  in  the  general  property  tax.  In 
that  year  such  corporations,  together  with  express  com- 
panies, were  assessed  on  a  personal  property  basis  at  the 
same  rate  as  the  property  of  an  individual  was  taxed.  The 
amount  of  property  was  arbitrarily  fixed  at  forty  per  cent 
of  the  gross  receipts.  In  1870  a  general  property  tax  law 
was  again  applied,  and  in  1878  an  ad  valorem  assessment  by 
the  Executive  Council  was  provided  for.  The  assessment 
was  based  on  the  property  of  the  companies  determined 
from  required  reports,  and  the  taxes  were  to  be  paid  into 
the  State  treasury.  The  rate  was  fixed  at  the  average  rate 
of  the  general  property  tax.  Telephone  companies  were 
declared  by  the  Supreme  Court  to  be  subject  to  this  law. 
More  complete  reports  were  required  of  the  companies  by 
the  Code  of  1897,  which  provided  that  gross  receipts,  oper- 
ating expenses,  and  the  par  and  market  value  of  the  stock 
should  be  included.  In  1900  the  system  was  changed.  The 
new  system  follows  closely  that  applied  to  railroad  cor- 
porations: the  Executive  Council  assesses  telegraph  and 
telephone  companies  by  the  unit  rule,  and  the  assessment  so 
made  is  apportioned  on  a  basis  of  mileage  and  is  taxed  as 
other  property.  Electric  transmission  lines  are  taxed  in  a 
similar  manner.^^® 


RAILROAD  TRANSPORTATION  63 

RECAPITULATION 

From  the  above  brief  review  it  appears  that  the  history 
of  railroad  legislation  may  be  divided  into  four  periods: 
the  first  period,  covering  about  twenty  years,  was  one  of 
construction  and  indulgence ;  the  second  period  was  one  of 
reaction  against  the  railroads,  and  covers  the  years  from 
1870  to  1878 ;  the  third  period  coincides  with  the  life  of  the 
first  railroad  commission,  that  is,  from  1878  to  1888;  and 
the  fourth  period  extends  from  1888  to  the  present  day  and 
includes  the  railroad  legislation  since  the  establishment  of 
the  present  mandatory  commission. 

The  people  of  the  State  early  realized  their  dependence 
upon  transportation  facilities.  They  had  attempted  to  im- 
prove water  transportation  and  found  it  to  be  slow  and 
unsatisfactory.  Unable  to  build  a  system  of  permanent 
roads,  they  had  encouraged  the  building  of  graded  and  plank 
toll  roads  and  had  been  disappointed  in  them.  The  coming 
of  the  railroads  was  welcomed  since  their  practicability  as  a 
means  of  rapid  transportation  had  been  demonstrated  in 
the  older  States.  It  was  logical,  therefore,  that  the  new 
State  of  Iowa  should  offer  all  the  encouragement  possible  in 
order  to  stimulate  the  construction  of  railroads. 

At  the  first  session  of  the  General  Assembly  an  incorpora- 
tion law  was  passed  providing  for  the  building  of  railroads. 
Congress  was  memorialized  for  grants  of  lands  to  aid  in 
construction,  and  the  campaign  for  railroad  transportation 
facilities  was  begun.  Congress  responded  with  a  generous 
land  grant  policy;  and  the  people  taxed  themselves  and 
made  gifts  of  land  and  money  in  order  to  hasten  the  coming 
of  the  railroads.  But  railroad  building  progressed  very 
slowly.  The  necessary  capital  was  not  available  in  the 
State,  and  eastern  capitalists  did  not  seem  eager  to  invest 
their  money  until  there  was  some  prospect  of  immediate 
return.  Generous  gifts  by  the  people  and  land  grants  of 
enormous  proportions  helped,  however,  to  bring  about  the 


64  ECONOMIC  LEGISLATION  IN  IOWA 

desired  results,  and  by  1870  the  State  was  crossed  from 
east  to  west  by  four  great  trunk  lines  —  the  present  lines  of 
the  Illinois  Central;  the  Chicago  and  North  Western;  the 
Chicago,  Eock  Island,  and  Pacific;  and  the  Chicago,  Bur- 
lington, and  Quincy  railroad  companies. 

It  was  about  this  time  that  a  change  of  attitude  toward 
railroads  came  to  be  noticeable.  The  roads  had  been 
financed  largely  by  eastern  capital,  and  they  were  managed 
by  people  outside  the  State.  Care  had  not  been  taken  to 
understand  conditions  and  the  temper  of  the  people  in  the 
then  western  States.  Railroad  managers  assumed  that  they 
were  doing  a  great  deal  for  the  country  and  expected  the 
people  to  accept  thankfully  whatever  facilities  were  offered 
by  the  railroad  companies  and  to  pay  without  question  what- 
ever rates  were  determined  by  them.  The  people  of  the 
State,  on  the  other  hand,  believed  that  they  had  the  right  to 
expect  good  service  at  reasonable  rates.  Moreover,  the  act 
by  which  the  lands  granted  by  Congress  had  been  turned 
over  to  the  railroad  companies  declared  that  all  railroads 
accepting  the  lands  would  be  subject  to  such  rules  and  regu- 
lations as  might  be  enacted  by  the  General  Assembly  —  a 
provision  which  had  not  been  forgotten  by  the  people  of  the 
State. 

Furthermore,  abuses  had  found  their  way  into  railway 
management.  There  was  a  very  general  feeling  that  rates 
were  too  high;  discrimination  was  prevalent;  pools  were 
organized;  and  through  rates  for  long  hauls  were  unduly 
high.  This  last  point  was  one  of  considerable  importance. 
Indeed,  a  low  rate  for  the  long  haul  of  products  to  eastern 
markets  was  absolutely  essential  to  the  prosperity  of  an 
agricultural  State  like  Iowa.  It  is  now  apparent  that  the 
railroad  companies  pursued  a  short-sighted  policy  in  not 
making  more  of  an  effort  to  satisfy  shippers. 

In  addition  to  the  Granger  movement,  which  was  growing 
rapidly  and  which  favored  stringent  railroad  regulation. 


RAILROAD  TRANSPORTATION  65 

the  panic  of  1873  increased  the  opposition  to  railroads.  The 
demand  for  regulatory  railroad  legislation  was  heard  in  all 
parts  of  the  State  in  the  campaign  of  1873. 

The  outcome  of  the  agitation  was  the  maximum  rate  law 
of  1874.  Although  the  railroad  companies  were  hostile  and 
indifferent  to  this  legislation  it  was  tested  in  the  courts  and 
declared  to  be  valid.  Thus  it  was  settled  that  the  State  had 
the  right  to  establish  limitations  upon  the  power  of  railroad 
companies  to  fix  the  price  at  which  they  would  carry  passen- 
gers and  freight.  The  law  of  1874  remained  on  the  statute 
books  only  four  years :  it  was  repealed  in  1878. 

With  the  repeal  of  the  maximum  rate  law  came  the  estab- 
lishment of  the  Board  of  Railroad  Commissioners.  Al- 
though the  enforcement  of  the  rate  law  had  been  an 
admitted  failure,  some  form  of  control  was  clearly  neces- 
sary. A  commission  having  proven  successful  in  Massa- 
chusetts, the  Iowa  legislature  turned  its  attention  to  this 
form  of  control.  The  first  Iowa  commission  was  of  the 
advisory  type  —  that  is,  it  had  no  power  to  enforce  its  rec- 
ommendations. It  was  forced  to  rely  upon  public  opinion, 
the  legislature,  and  the  courts  to  bring  about  needed 
changes. 

The  determination  of  rates  having  been  left  with  the 
railroad  companies,  the  commission  devoted  itself  to  a  study 
of  the  situation  and  to  the  settlement  of  differences  between 
shippers  and  carriers.  Railroad  construction  was  resumed 
with  vigor.  But  complaints  of  abuses  continued  to  be  heard ; 
nor  was  the  commission  always  successful  in  removing  the 
cause  of  such  complaints.  Accordingly,  in  1888  the  board 
was  reorganized  and  changed  into  a  strong  commission  with 
large  powers. 

The  present  mandatory  commission  as  established  in  1888 
has  been  quite  successful:  industries  have  developed  rap- 
idly and  the  State  has  been  well  supplied  with  transporta- 
tion facilities.    With  broad  regulatory  powers,  the  Board  of 


66  '  ECONOMIC  LEGISLATION  IN  IOWA 

Kailroad  Commissioners  now  has  general  supervision  over 
all  common  carriers  in  the  State.  It  hears  complaints,  and 
has  been  instrumental  in  decreasing  the  practice  of  unjust 
discrimination.  Moreover,  the  recent  establishment  of  the 
office  of  Commerce  Counsel  to  aid  the  commission  has  added 
to  its  efficiency. 

Common  carriers  other  than  railroads  have  entered  the 
State.  But  legislation  relative  to  such  companies  has  been 
fragmentary  —  although  they  have  all  been  placed  under 
the  general  supervision  of  the  Eailroad  Commissioners.  To 
this  group  of  carriers  belong  the  express  companies,  tele- 
phone and  telegraph  companies,  freight  line  and  equipment 
companies,  and  power  transmission  lines. 

When  railroads  first  came  into  the  State  they  were  not 
taxed.  Later  they  were  taxed  through  the  shares  of  stock 
in  the  hands  of  the  stockholders.  The  demand  for  revenue 
during  the  Civil  War  led  to  the  gross  receipts  tax.  After 
the  close  of  the  war  State  assessment  coupled  with  local 
taxation  was  adopted  and  worked  out  on  a  basis  of  ad 
valorem  taxation.  This  system  of  taxation,  which  has 
worked  fairly  well,  has  been  retained  to  the  present  day. 


Ill 

AGRICULTURE  AND  STOCK-RAISING 

AGRICULTURE 

Throughout  its  history  Iowa  has  been  primarily  an  agri- 
cultural Commonwealth.  The  chief  products  of  the  State 
have  always  come  from  the  farms :  it  is  a  leading  producer 
of  corn,  small  grain,  dairy  products,  and  stock  —  horses, 
cattle,  sheep,  hogs,  and  poultry.  At  the  same  time  an  exam- 
ination of  the  statute  books  reveals  the  fact  that  in  Iowa 
relatively  little  legislation  has  been  enacted  for  the  promo- 
tion or  regulation  of  agricultural  interests.  The  first  law 
on  the  subject  was  passed  by  the  First  Legislative  Assembly 
of  the  Territory  of  Iowa  and  was  entitled  ''An  Act  to  pro- 
vide for  the  incorporation  of  Agricultural  Societies."  It 
provided  that  twenty  or  more  citizens  of  any  county  might 
incorporate  themselves  as  an  agricultural  society  for  the 
purpose  of  encouraging  agriculture  and  stock-raising  by 
awarding  prizes  upon  "articles,  animals,  mode  of  hus- 
bandry, or  other  improvements  of  any  kind  connected  with 
agriculture  or  domestic  mechanism  ".^^^^ 

In  1842  another  act  "for  the  encouragement  of  Agricul- 
ture" provided  for  the  organization  of  a  Territorial  Agri- 
cultural Society  in  the  same  manner  as  county  societies 
were  organized  and  with  the  same  duties  and  privileges  for 
the  whole  Territory.  In  the  same  manner  also  the  organiza- 
tion of  township  societies  was  authorized.  Twelve  hundred 
dollars  was  appropriated  to  be  divided  among  the  several 
societies  for  the  promotion  of  agriculture  and  household 
manufactures.    Moreover,  the  policy  of  contributing  to  the 

67 


68  ECONOMIC  LEGISLATION  IN  IOWA 

funds  of  the  societies  upon  condition  of  their  raising  certain 
amounts  was  established  at  this  time. 

These  agricultural  societies  were  to  elect  officers,  hold 
fairs,  award  premiums,  and  make  reports.  Section  five  of 
the  act  stated  that  it  should  be  the  duty  of  the  officers  ' '  an- 
nually to  regulate  and  award  premiums,  on  such  articles, 
productions,  and  improvements,  as  they  may  deem  best  cal- 
culated to  promote  the  agricultural,  and  household  manu- 
facturing interests  of  this  Territory;  having  especial  refer- 
ence to  the  nett  profits  which  accrue,  or  are  likely  to  accrue, 
from  the  mode  of  raising  the  crops  or  stock,  or  the  fabrica- 
tion of  the  article,  with  the  intention  that  the  reward  shall 
be  given  to  the  most  profitable  or  economical  mode  of  com- 
petition"—  provided  the  person  claiming  the  premium 
should  deliver  to  the  society,  ''as  accurate  a  description  of 
the  process,  in  preparing  the  soil,  raising  the  crop,  or  feed- 
ing the  animal,  as  may  be ;  also  the  product  of  the  crop,  or 
of  increase  in  the  valuation  of  the  animal,  with  a  view  of 
showing  accurately  the  profit  of  cultivating  the  crops  or 
feeding  and  fattening  the  animal.  "^^^ 

The  policy  of  granting  public  aid  to  the  Territorial  Agri- 
cultural Society  and  to  the  various  county  societies  was 
continued  after  Iowa  was  admitted  into  the  Union.  Indeed, 
the  State  has  been  generous,  and  the  societies  thus  aided 
have  done  much  to  further  the  development  of  improved 
methods  in  agriculture,  horticulture,  and  stock-raising. 
Thousands  of  fairs  and  expositions  have  been  held  and 
hundreds  of  thousands  of  premiums  have  been  awarded. 
Eeports  have  been  published  and  distributed,  and  much 
valuable  information  disseminated  among  the  farmers. 

The  act  of  1857  for  the  encouragement  of  agriculture  was 
important :  it  outlined  the  plan  that  has  since  been  followed 
by  the  State  in  encouraging  agricultural  development.  The 
first  section  of  this  measure  stated  that  it  should  be  the  duty 
of  all  county  agricultural  societies   (1)   to  offer  annually 


AGRICULTURE  AND  STOCK-RAISING  69 

premiums  for  the  improvement  of  stock,  tillage  crops,  im- 
plements, mechanical  fabrics,  and  articles  of  domestic 
industry,  and  such  other  articles  and  improvements  as  may 
be  deemed  proper,  and  (2)  to  regulate  the  amount  of  pre- 
miums and  the  grades  of  the  same  in  such  a  manner  as  to 
allow  small  as  well  as  large  farmers  and  artisans  to  com- 
pete. Such  societies  were  required  to  publish  awards  and 
make  reports,  elect  officers,  publish  a  list  of  rules,  and  to 
report  to  the  General  Assembly.  Societies  complying  with 
the  conditions  and  regulations  imposed  by  the  act  were 
eligible  to  receive,  within  a  certain  limit,  an  amount  of 
money  from  the  State  equal  to  the  sum  raised  by  the  soci- 
eties themselves. ^^2  Regular  appropriations  have  since 
been  made  for  the  aid  and  patronage  of  the  State  Agricul- 
tural Society,  which  was  later  superseded  by  the  State  De- 
partment of  Agriculture. 

The  establishment  of  the  Iowa  State  College  of  Agricul- 
ture and  Mechanic  Arts  in  1858  was  an  important  step  in 
encouraging  the  development  of  the  agricultural  resources 
of  the  State.  Furthermore,  many  minor  and  amendatory 
acts  have  been  passed,  along  with  some  measures  of  consid- 
erable importance.  For  example,  counties  were  authorized 
to  subscribe  to  the  support  of  county  agricultural  societies 
in  1866.  Hedging  and  the  planting  of  forest  trees  and  fruit 
orchards  have  been  encouraged  through  tax  exemptions  on 
lands  used  for  such  purposes.  Measures  have  been  taken  to 
encourage  the  destruction  of  thistles  and  other  noxious 
weeds.  The  Iowa  Weather  and  Crop  Service,  which  has 
developed  rapidly  and  proven  helpful  in  the  collection  and 
dissemination  of  statistics  relative  to  crops  and  weather 
conditions,  was  established  in  1878.  In  1892  provision  was 
made  for  holding  farmers '  institutes,  the  purpose  of  which 
is  to  disseminate  practical  and  scientific  knowledge  pertain- 
ing to  agriculture  in  all  its  varied  branches.  Such  institutes 
are  now  very  popular  and  are  of  great  value  to  the  com- 


70  ECONOMIC  LEGISLATION  IN  IOWA 

munities  in  which  they  are  held.^^^  In  1900  provision  was 
made  for  a  more  \agorous  policy  in  regard  to  the  encour- 
agement of  all  branches  of  agriculture  within  the  State. 
The  State  Agricultural  Society  w^as  superseded  by  the  newly 
created  Department  of  Agriculture  which  was  established 
for  the  promotion  of  agriculture,  horticulture,  forestry,  ani- 
mal industry,  manufactures,  and  the  domestic  arts.  It  em- 
braces all  the  district  and  county  agricultural  societies 
organized  under  existing  statutes  and  entitled  to  receive  aid 
from  the  State,  the  State  Weather  and  Crop  Service,  the 
office  of  the  Dairy  Commissioner,  and  the  office  of  the  State 
Veterinarian.  The  department  is  governed  by  the  State 
Board  of  Agriculture  which  consists  of  four  ex  officio  mem- 
bers —  the  Governor,  the  President  of  the  Iowa  State  Col- 
lege of  Agriculture  and  Mechanic  Arts,  the  State  Dairy 
Commissioner,  and  the  State  Veterinarian  —  and  of  one 
director  from  each  congressional  district. 

The  State  Board  of  Agriculture  has  general  supervision 
of  the  several  branches,  bureaus,  and  offices  embraced  in  the 
Department  of  Agriculture.  Its  duties  are  to  look  after  and 
promote  the  interests  of  agriculture,  of  agricultural  educa- 
tion, and  of  animal  and  other  farm  industries  throughout 
the  State ;  to  investigate  all  subjects  relating  to  the  improve- 
ment of  methods,  appliances,  and  machinery,  and  the  diver- 
sification of  crops  and  products ;  and  to  investigate  reports 
of  the  prevalence  of  contagious  or  infectious  diseases  among 
animals,  or  destructive  insects  and  fungus  diseases  in 
grains,  grasses,  and  other  plants,  the  adulteration  of  foods, 
seeds,  and  products,  and  to  report  the  result  of  such  investi- 
gations with  recommendations  and  remedial  measures.  The 
Department  of  Agriculture  cooperates  with  the  Iowa  Agri- 
cultural Experiment  Station  at  Ames  in  carrying  out  these 
investigations.  The  State  Board  of  Agriculture  was  given 
full  control  of  the  State  fair  grounds  and  fairs ;  and  it  pub- 
lishes and  distributes  the  Iowa  Year  Book  of  Agriculture.^^"^ 


AGRICULTURE  AND  STOCK-RAISING  71 

In  order  to  encourage  the  teaching  of  elementary  agri- 
culture and  home  economics  in  the  rural  schools  of  the  State, 
a  law  was  passed  in  1911  for  the  purpose  of  aiding  high 
schools  in  training  teachers  for  service  in  the  rural 
schools.^^^  The  Thirty-fifth  General  Assembly  authorized 
the  incorporation,  in  each  county  of  the  State,  of  an  associ- 
ation for  the  advancement  and  improvement  of  agriculture, 
horticulture,  and  animal  husbandry.  Associations  incor- 
porated under  this  act  may  employ  one  or  more  experts  or 
advisers  for  the  improvement  of  all  branches  of  agriculture 
in  their  respective  counties.  They  may  also  hold  fairs, 
short  courses,  and  farmers'  institutes.  According  to  the 
original  law,  after  the  articles  of  incorporation  were  filed 
the  question  of  a  tax  levy  of  not  more  than  $5000  for  the 
purpose  of  improving  and  advancing  the  science  and  art  of 
agriculture,  animal  husbandry,  and  horticulture,  could  be 
submitted  to  the  voters  of  the  county.  This  last  provision 
was  superseded  in  1917  by  a  provision  which  authorizes 
boards  of  supervisors  to  contribute  $2500  per  year  to  those 
county  agricultural  societies  which  have  a  membership  of  at 
least  two  hundred  farmers  or  farm  owners  in  the  county 
and  which  have  raised  from  among  their  members  a  yearly 
subscription  of  not  less  than  $500.^^^ 

It  is  noticeable  that  throughout  the  history  of  the  State, 
legislation  in  regard  to  agriculture  has  been  of  a  character 
to  encourage  improvement  in  agricultural  methods  through 
township,  county,  and  State  societies  and  farmers'  insti- 
tutes. 

AGEICULTUEAL  EDUCATION 

In  this  connection  no  attempt  will  be  made  to  treat  of  all 
the  legislation  which  has  been  enacted  relative  to  the  admin- 
istration of  the  Iowa  State  College  of  Agriculture  and  Me- 
chanic Arts,  but  it  will  be  necessary  to  consider  some  of  the 
measures  pertaining  to  that  institution  wTiich  have  to  do 


72  ECONOMIC  LEGISLATION  IN  IOWA 

with  the  encouragement  and  improvement  of  agriculture  in 
the  State,  since  the  agricultural  college  itself  was  estab- 
lished for  the  purpose  of  encouraging  agriculture.  The  first 
section  of  the  act  of  1858,  which  established  the  college, 
reads :  "Be  it  enacted  by  the  General  Assembly  of  the  State 
of  loiva,  That  there  is  hereby  established  a  State  Agricul- 
tural College  and  Model  Farm,  to  be  connected  with  the 
entire  Agricultural  Interests  of  the  State."  Section  fifteen 
pro^ided  that  ''the  course  of  instruction  in  said  college  shall 
include  the  following  branches,  to  wit :  Natural  Philosophy, 
Chemistry,  Botany,  Horticulture,  Fruit  Growing,  Forestry, 
Animal  and  Vegetable  Anatomy,  Geology,  Mineralogy,  Me- 
teorology, Entymology,  Zoology,  the  Veterinary  Art,  plain 
Mensuration,  Levelling,  Surveying,  Book  Keeping,  and  such 
mechanic  arts  as  are  directly  connected  with  Agriculture. 
Also,  such  other  studies  as  the  trustees  may  from  time  to 
time  prescribe,  not  inconsistent  with  the  purposes  of  this 
act."  Tuition  was  to  be  free  to  pupils  coming  from  this 
State.  A  minute  and  accurate  account  with  each  field  and 
of  each  crop  was  required  to  be  kept,  and  such  account  was 
to  include  the  time  and  manner  of  cultivation,  the  amount  of 
seed  and  product,  the  condition  of  the  field  before  planting 
and  sowing  and  after  harvesting,  and  the  kind  and  amount 
of  fertilizer  used.  A  detailed  record  of  the  animals  kept 
and  of  weather  conditions  was  also  required. 

The  secretary  of  the  college  was  required  to  preserve 
documents  and  specimens,  to  encourage  the  formation  of 
agricultural  societies,  to  foster  the  importation  of  improved 
breeds  of  stock  and  plants,  and  to  promote  domestic  manu- 
factures.""^ 

Moreover,  it  should  be  noted  in  this  connection  that  the 
National  government  has  indicated  its  interest  in  the  en- 
couragement of  improved  methods  of  agriculture  by  making 
generous  land  grants  to  States  establishing  agricultural 
colleges.    Iowa  was  one  of  the  States  to  receive  such  grants. 


AGRICULTURE  AND  STOCK-RAISING  73 

The  Iowa  State  College  of  Agriculture  and  Mechanic 
Arts  has  from  its  establishment  done  much  to  improve 
every  branch  of  agriculture.  Having  had  the  confidence  of 
the  people  of  the  State,  it  has  received  liberal  support  from 
the  General  Assembly.  In  many  ways  it  has  been  an  impor- 
tant factor  in  the  agricultural  development  of  Iowa.  The 
law  which  was  enacted  in  1884  as  a  substitute  for  the  old 
prescribed  course  of  study,  provides  ''that  there  shall  be 
adopted  and  taught  at  the  State  agricultural  college  a  broad, 
liberal  and  practical  course  of  study  in  which  the  leading 
branches  of  learning  shall  relate  to  agriculture  and  the 
mechanic  arts,  and  which  shall  also  embrace  such  other 
branches  of  learning  as  will  most  practically  and  liberally 
educate  the  agricultural  and  industrial  classes  in  the  sev- 
eral pursuits  and  professions  of  life  including  military  tac- 
tics. "^^^  Provision  was  also  made  in  1884  for  the  publica- 
tion, by  the  State,  of  the  annual  proceedings  of  the  Iowa 
Improved  Stock  Breeder's  Association.  The  State  cooper- 
ated with  the  Federal  government  in  establishing  an  experi- 
ment station  in  connection  with  the  college  at  Ames. 

A  School  of  Mines  was  established  at  Ames  in  1894.  In 
1904  the  college  was  designated  as  the  State  Highway  Com- 
mission. Courses  in  clay-working,  ceramics,  and  cements 
were  established  in  1906 ;  and  in  the  same  year  an  appropri- 
ation provided  for  agricultural  extension  and  experiment 
work,  the  scope  of  which  has  been  enlarged  by  various  recent 
statutes.  Laboratories  for  the  manufacture  of  hog  cholera 
serum  have  also  been  established.^^^ 

While  the  legislation  affecting  agricultural  development 
in  Iowa  has  been  fragmentary,  the  Iowa  State  College  of 
Agriculture  and  Mechanic  Arts  has  been  a  very  important 
factor  in  the  agricultural  progress  of  the  State.  The  college 
has  cooperated  with  the  State  Agricultural  Society,  with  the 
county  associations,  with  the  farmers'  institutes,  and  with 
the  various  associations  which  have  for  their  purpose  some 


74  ECONOMIC  LEGISLATION  IN  IOWA 

phase  of  the  development  of  the  resources  of  the  State. 
Valuable  results  have  been  accomplished  and  great  progress 
has  been  made  in  improved  methods  of  agriculture  and  in 
breeding  a  better  grade  of  stock. 

STOCK  EAISING  AND  BREEDING:   DOMESTIC  ANIMALS 

Restraining  Stock  from  Running  at  Large: — During  the 
pioneer  period  there  were  few  fences,  and  domestic  animals 
of  all  kinds  were  allowed  to  run  at  large  during  at  least  a 
part  of  the  year.  In  1839  a  measure  was  passed  which  pro- 
vided that  stud-horses  of  the  age  of  two  years  or  more  run- 
ning at  large  could  be  taken  up  and  gelded  at  the  owner's 
risk.  During  the  same  year  there  was  enacted  a  more  de- 
tailed law  which  contained  regulations  regarding  the  lawful 
manner  of  taking  up  stray  animals  and  of  delivering  them 
to  their  proper  owners.  According  to  its  provisions  stray 
animals  could  not  be  taken  up  between  the  first  day  of  May 
and  the  first  day  of  November,  unless  the  animal  should  be 
a  ''work  beast,  and  manifestly  straying  away  from  the 
owner. ' '  Moreover,  the  taking  up  had  to  be  advertised,  and 
compensation  was  allowed  the  taker-up  for  his  trouble.  In 
case  the  owner  could  not  be  found,  the  property,  under  cer- 
tain conditions,  would  vest  in  the  finder  or  taker-up. 

The  law  of  1839  was  later  amended  by  defining  the  lia- 
bility of  persons  taking  up  estrays.  Such  persons  were  not 
to  abuse  or  neglect,  sell,  allow  to  escape,  or  take  out  of  the 
county  for  more  than  three  days  any  stray  animal  taken  up 
by  them.  Other  acts  were  passed  which  were  applicable  to 
certain  kinds  of  animals  and  in  certain  counties  or  cities.^'*'' 
The  Code  of  1851  made  provision  for  the  recovery  of  dam- 
ages from  the  owners  of  trespassing  animals,  and  author- 
ized county  judges  to  submit  to  a  vote  of  the  people  the 
question  whether  or  not  stock  should  be  permitted  to  run  at 
large. 

In  1855  it  was  provided  that  "no  stallion  or  jack,  bull, 


AGRICULTURE  AND  STOCK-RAISING  75 

boar,  or  ram,  shall,  hereafter,  be  allowed  to  run  at  large", 
and  other  special  and  amendatory  measures  of  a  similar 
nature  were  enacted.  The  so-called  herd  law,  enacted  in 
1872,  was  a  general  act  to  restrain  stock  from  running  at 
large  and  to  make  the  owners  of  stock  liable  for  damage 
done  by  stock  at  large.  It  provided  for  a  referendum  vote 
by  the  people  of  each  county  to  determine  whether  or  not 
the  law  should  be  enforced  in  their  county.^'* ^  By  this  time 
(1872)  lands  were  pretty  well  enclosed,  so  that  legislation 
relative  to  restraining  domestic  animals  from  running  at 
large  was  no  longer  needed.  It  should  be  remembered, 
however,  that  when  such  laws  were  enacted  they  were  of 
much  importance  to  the  inhabitants  of  a  country  which  was 
almost  exclusively  agricultural. 

Improvement  of  Domestic  Animals: — Laws  restraining 
stock  from  running  at  large  fulfilled  their  purpose :  fences 
were  built  and  it  became  customary  for  owners  of  stock  to 
restrain  their  animals  as  a  matter  of  course.  Meanwhile 
the  grade  of  stock  was  being  constantly  improved.  As  early 
as  1888  the  keepers  of  pedigreed  bulls  and  stallions  were  re- 
quired to  post  a  copy  of  their  certificates  of  registration, 
and  it  was  made  a  misdemeanor  to  post  a  false  certificate. 
The  registration  and  publication  of  pedigrees  was  put  in 
charge  of  the  Secretary  of  the  State  Board  of  Agriculture 
in  1906.  Provision  was  made  by  law  for  the  transfer  of 
State  certificates  for  pure  bred  stallions.  A  more  detailed 
act  regulates  the  keeping  and  sale  of  registered  and  pedi- 
greed stock.  A  veterinarian's  certificate  of  the  soundness 
and  freedom  from  disease  of  certain  pedigreed  stock  kept 
for  public  service  is  now  required.  Such  certificates  are 
also  required  for  stock  imported  for  dairy  or  breeding  pur- 
poses.^^^ 

In  1909  an  appropriation  of  $10,000  was  made  by  the  Gen- 
eral Assembly  for  the  purpose  of  encouraging  the  dairy 


76  ECONOMIC  LEGISLATION  IN  IOWA 

industry.  Inspectors  were  provided  to  inspect  dairy  farms, 
dairy  cattle,  dairy  barns,  and  other  buildings  and  appliances 
used  in  connection  therewith,  including  dairy  products,  and 
to  furnish  instruction  and  assistance  to  advance  the  general 
interests  of  the  dairy  industry  in  the  State.  Appropriations 
for  this  purpose  and  for  the  encouragement  of  the  beef  cat- 
tle growing  industry  were  continued  in  1911, 1913,  and  1915. 
The  Thirty-seventh  General  Assembly  in  1917  provided  for 
definite  State  recognition  for  the  Iowa  State  Dairy  Associ- 
ation, the  Iowa  Beef  Cattle  Producers'  Association,  and  the 
Iowa  Corn  and  Small  Grain  Growers'  Association,  and  as- 
sured the  associations  of  permanent  State  support  and  en- 
couragement. State  aid  was  also  granted  to  county  poultry 
associations ;  and  provision  was  made  for  the  appointment 
of  a  State  Apiarist  to  inspect  bees  and  promote  the  produc- 
tion of  honey. ^■^^ 

Health  of  Domestic  Animals: — Regulatory  legislation 
for  the  purpose  of  safe-guarding  the  health  of  domestic 
animals  and  stock  has  been  enacted  from  time  to  time  since 
1862,  when  the  importation,  running  at  large,  and  sale  of 
diseased  sheep  was  prohibited.  A  similar  act  applicable  to 
diseased  horses  and  mules  followed  in  1866.  Two  years 
later,  the  importation  of  Texas  or  southern  cattle  was  pro- 
hibited in  order  to  prevent  the  spread  of  the  so-called  Texas 
or  Spanish  fever.^^^  Losses  from  diseased  animals  led  to 
the  appointment  of  a  State  Veterinary  Surgeon  in  1884  "to 
have  general  supervision  of  all  contagious  and  infectious 
diseases  among  domestic  animals  within  or  that  may  be  in 
transit  through  the  State",  with  power  to  establish  quaran- 
tine, and  to  establish  and  enforce  such  rules  and  regulations, 
with  the  concurrence  of  the  State  Board  of  Health,  as  the 
case  demands  against  the  spread  of  and  for  the  prevention 
of  diseases. 

The  services  of  the  State  Veterinary  Surgeon  may  be  had 


AGRICULTURE  AND  STOCK-RAISING  77 

by  boards  of  supervisors,  by  city  councils,  and  by  town  or 
township  trustees.  When  requested  the  surgeon  is  to  go  to 
the  locality  and  take  such  action  as  the  exigencies  of  the 
situation  may  demand.  In  case  of  need  the  Governor  may 
appoint  substitutes  and  assistants.  When  public  safety  re- 
quires such  action  the  destruction  of  stock  may  be  ordered, 
and  the  stock  so  destroyed  is  paid  for  in  part  by  the  State. 
An  annual  report  is  required  of  the  State  Veterinary  Sur- 
geon. Traffic  in  diseased  hogs  and  cattle  was  prohibited  in 
1886 ;  and  provision  was  made  in  1892  for  the  appointment 
of  sheep  inspectors  by  the  several  boards  of  county  super- 
visors. Measures  regulating  the  practice  of  veterinary 
medicine  were  also  enacted.^^^ 

In  1906  provision  was  made  for  the  inspection  of  regis- 
tered cattle  brought  into  the  State  for  breeding  or  dairy 
purposes.  The  frequent  ravages  of  hog  cholera  among  the 
hogs  of  the  State  and  the  resulting  loss  led  in  1909  to  an  act 
authorizing  the  State  Veterinary  Surgeon  to  establish  a 
laboratory  at  Des  Moines  for  the  manufacture  of  hog  chol- 
era serum  —  such  serum  to  be  furnished  to  applicants  at 
cost  with  instructions  for  its  use.  In  1913  the  State  Board 
of  Education  was  authorized  to  abandon  the  Des  Moines 
plant  and  a  new  laboratory  for  the  manufacture  of  hog 
cholera  serum,  toxines,  vaccines,  and  biological  products, 
was  established  at  Ames  in  connection  with  the  State  Col- 
lege of  Agriculture  and  Mechanic  Arts.  Provision  was  also 
made  to  regulate  the  sale,  keeping  for  sale,  and  use  of  such 
serums  or  vaccines  throughout  the  State.^^*^ 

By  the  Thirty-fourth  General  Assembly  there  was  estab- 
lished a  Commission  of  Animal  Health,  composed  of  the 
State  Veterinary  Surgeon,  two  other  veterinary  surgeons, 
and  two  stock-raisers  to  be  appointed  by  the  Governor  of 
the  State.  This  commission  has  the  "power  and  authority 
to  make  such  rules  and  regulations  as  it  shall  deem  neces- 
sary for  the  prevention,  suppression,  or  against  the  spread 


78  ECONOMIC  LEGISLATION  IN  IOWA 

of  any  contagious  or  infectious  disease  among  animals  in  or 
being  driven  or  transported  through  or  brought  into  the 
state,  and  may  provide  for  quarantining  against  animals 
thus  diseased  or  that  have  been  exposed  to  others  so  dis- 
eased, whether  within  or  without  the  State."  Such  rules 
and  regulations  when  approved  by  the  Executive  Council 
are  published  and  enforced.  The  recent  appearance  among 
the  cattle  of  this  and  other  States,  of  the  "foot  and  mouth 
disease",  led  the  Thirty-sixth  General  Assembly  to  make 
provision  for  the  partial  payment  to  the  owners  of  stock  for 
animals  killed  by  order  of  the  State  Veterinary  Surgeon  in 
the  carrying  out  of  his  duties  under  the  laws  of  the  State, 
and  for  stricter  quarantine  regulations.^^^ 

Protection  of  Domestic  Animals  and  Crops: — Finally,  in 
connection  with  legislation  concerning  agriculture  and  do- 
mestic animals  mention  should  be  made  of  a  group  of  laws 
of  a  protective  character.  Comparatively  early  in  the  his- 
tory of  the  State  measures  were  taken  to  provide  for  the 
recording  and  protection  of  marks  selected  by  owners  by 
which  their  stock  could  be  identified.  The  driving  aw^ay  of 
stock  was  prohibited.  Protection  against  horse  thieves  was 
provided.  Dogs  were  taxed  to  provide  a  fund  to  compensate 
owners  for  the  loss  of  sheep  killed  by  dogs;  and  bounties 
were  authorized  for  the  destruction  of  wolves,  lynx,  wild 
cats,  gophers,  ground  hogs,  rattlesnakes,  and  crows.^^^ 

BECAPITULATION 

A  review  of  the  legislation  affecting  agriculture  and 
stock-raising  in  Iowa  shows  that  two  important  lines  of 
legislation  have  been  developed  which  have  had  much  in- 
fluence in  encouraging  the  growth  of  the  natural  industries 
of  the  State.  These  may  be  referred  to  as  educational  and 
protective.  Tliat  is  to  say,  there  have  been  no  laws  enacted 
that  have   directly  affected   the   production   of  abundant 


AGRICULTURE  AND  STOCK-RAISING  79 

crops  or  the  breeding  of  better  stock;  but  legislation  has 
been  enacted  of  a  nature  to  indirectly  accomplish  the  same 
results. 

The  first  group  of  such  laws  has  had  for  its  purpose  the 
encouragement  of  agricultural  education.  The  policy  of  en- 
couraging agricultural  societies  was  established  early  and 
has  been  continued  to  the  present  time.  The  value  of  such  a 
policy  is  clearly  educational.  Fairs  and  expositions  have 
given  the  people  an  opportunity  to  see  the  best  and  to  make 
comparisons  between  their  own  products  and  those  of  oth- 
ers. The  State  College  of  Agriculture  and  Mechanic  Arts 
has  provided  the  best  of  instruction  to  the  young  people  of 
the  State.  It  has  conducted  experiments  and  given  to  the 
people  of  the  State  the  advantage  of  such  work :  it  is  a  clear- 
ing-house for  the  best  methods  of  carrying  on  the  important 
industries  under  consideration. 

The  recently  established  Department  of  Agriculture  is 
simply  a  better  organization  of  what  had  been  known  as  the 
State  Agricultural  Society  for  the  collection  and  dissemina- 
tion of  valuable  information  concerning  agriculture  and  the 
live  stock  industry.  The  provision  for  farmers'  institutes 
was  another  advance  along  this  same  line.  Provision  for 
the  instruction  of  pupils  in  the  common  schools  in  the  vari- 
ous branches  of  elementary  agriculture  and  domestic  econ- 
omy is  the  most  recent  development. 

Protective  legislation  includes  the  several  laws  which  have 
had  for  their  purpose  the  improvement  and  the  protection  of 
live  stock.  The  early  laws  to  restrain  stock  from  running  at 
large  were  to  protect  the  growing  crops  before  fences  were 
common. 

The  most  important  body  of  laws  in  this  group  consists  of 
those  statutes  which  have  provided  for  the  protection  of  the 
health  of  domestic  animals.  This  legislation  has  been  of 
great  importance  to  the  State.  Contagious  diseases  among 
domestic  animals  every  year  cost  the  farmers  and  stock- 


80  ECONOMIC  LEGISLATION  IN  IOWA 

breeders  of  the  country  enormous  sums.  Provision  has 
been  made  for  a  State  Veterinary  Surgeon  who  is  given 
general  direction  of  all  efforts  to  control  diseases  among 
domestic  animals.  Laws  prohibit  traffic  in  diseased  animals, 
and  inspection  has  been  provided  for  animals  about  to  be 
imported  into  the  State. 

The  State  has  also  provided  for  the  manufacture  and  dis- 
tribution of  various  serums  and  toxines  to  aid  in  combating 
disease  in  stock.  Provision  has  been  made  for  the  destruc- 
tion of  infected  stock  and  the  partial  remuneration  of  the 
owners  for  stock  so  destroyed.  Recently  a  Commission  of 
Animal  Health  w^as  established  for  the  purpose  of  more 
effectively  decreasing  the  loss  occasioned  to  farmers  and 
breeders  of  stock  by  disease.  Legislation  of  this  type  has 
been  sane  and  valuable. 

Iowa  is  an  extremely  favorable  country  for  agriculture 
and  stock-raising.  These  industries  developed  naturally 
and  without  legislative  aid  as  soon  as  markets  for  the  prod- 
ucts were  available.  As  a  result  the  legislation  that  has 
been  passed  has  been  incidental  and  indirect  in  effect.  This 
educational  and  protective  legislation  has  been  important, 
however,  and  the  policy  of  encouraging  the  great  industries 
of  the  State  in  this  manner  should  be  continued. 


IV 
MINES  AND  MINING 

Since  approximately  one-third  of  the  State  is  underlaid 
by  coal  beds,  mining  has  become  an  important  industry  in 
Iowa.  The  annual  output  of  soft  coal  alone  is  valued  at 
more  than  $15,000,000,  giving  employment  to  about  twenty 
thousand  men.  But  legislation  relative  to  mines  and  mining, 
with  the  exception  of  two  groups  of  acts,  is  fragmentary  and 
of  minor  importance.  There  have  been  many  laws  of  a  reg- 
ulatory character  enacted,  but  since  these  are  for  the  pro- 
tection of  mine  laborers  they  will  be  treated  in  a  chapter  on 
labor  legislation.  The  other  important  group  of  laws  per- 
taining to  mines  and  mining  provides  for  the  establishment 
and  work  of  the  geological  survey  of  the  State. 

The  only  law  placed  upon  the  statute  books  of  the  Terri- 
tory of  Iowa  on  the  subject  of  mines  and  mining  was  a  spe- 
cial act  incorporating  the  Dubuque  Mining  Company.  Later 
legislation  provided  for  maps  of  the  mineral  lands  around 
Dubuque  for  the  purposes  of  taxation.  Provision  was  also 
made  for  draining  mines,  and  for  obtaining  rights  of  way  to 
mines;  and  mining  under  the  State's  property  at  Des 
Moines  was  prohibited.  A  school  of  mines  for  the  State  was 
established  at  the  Iowa  State  College  of  Agriculture  and 
Mechanic  Arts  in  1894 ;  and  in  1911  a  law  was  passed  which 
authorizes  the  board  of  supervisors  of  any  county  to  levy  a 
tax  on  all  taxable  property  within  the  county,  to  be  used  in 
the  payment  of  expenses  incurred  in  prospecting  for  coal, 
on  condition  that  the  voters  of  the  county  approve  of  such  a 
levy  at  a  general  election. ^^'^  From  the  beginning  the  State 
has  pursued  a  let  alone  policy  with  reference  to  the  mining 

fi  81 


82  ECONOMIC  LEGISLATION  IN  IOWA 

industry  and  the  conservation  of  the  mineral  resources. 
Indeed,  with  the  exception  of  the  geological  survey,  little 
has  been  done  by  the  State  for  the  encouragement  of  this 
industry. 

THE  GEOLOGICAL  SURVEY 

Two  early  attempts  were  made  to  establish  a  geological 
survey  in  the  State  of  Iowa ;  but  owing  to  the  weakness  of 
the  legislation  both  efforts  failed  of  any  satisfactory  accom- 
plishment. It  was  a  case  of  voting  an  appropriation  for  the 
beginning  of  a  piece  of  work  without  making  adequate  pro- 
vision for  its  continuance. 

The  primary  aim  of  a  geological  survey  is  to  discover 
natural  resources  in  and  beneath  the  soil  and  to  encourage 
their  development.  It  was  in  1855  that  the  first  attempt  to 
provide  for  such  a  survey  was  made  in  Iowa.  A  State  Geol- 
ogist was  appointed  by  the  Governor  to  make  a  thorough 
geological  and  mineralogical  survey  of  the  State,  along  with 
an  investigation  of  the  character  and  quality  of  the  soil  for 
agricultural  purposes.  An  appropriation  was  made  to  carry 
out  the  work  for  a  period  of  only  two  years.  The  next  Gen- 
eral Assembly  continued  the  appropriation  for  two  years, 
but  thereafter  appropriations  were  withheld. ^^^  Provision 
for  a  geological  survey  was  again  made  in  1866.  'Biennial 
appropriations  were  made  at  the  following  session  of  the 
General  Assembly,  but  in  1870  the  work  was  once  more 
discontinued  for  lack  of  funds. ^"^^ 

More  than  twenty  years  later,  in  1892,  renewed  agitation 
for  a  survey  resulted  in  constructive  legislation.  A  Geolog- 
ical Board  was  established,  and  to  this  board  was  entrusted 
the  appointment  of  individuals  to  carry  on  the  work  of  the 
survey.  This  was  the  beginning  of  a  continuous  policy  of 
scientific  and  economic  investigation.  The  survey  was  or- 
ganized as  an  independent  agency,  and  was  not  appended  to 
any  other  department  of  the  government.    An  arrangement 


MINES  AND  MINING  *  83 

for  the  printing  of  the  reports  of  the  survey  was  provided 
under  the  same  conditions  as  pertain  to  other  State  reports. 
Permanent  annual  appropriations  of  moderate  size  rather 
than  larger  amounts  for  uncertain  periods  were  favored  by 
those  interested  in  the  measure;  but  this  feature  was  not 
secured  until  a  later  time.^^^ 

The  object  of  the  Geological  Survey  has  been  to  deter- 
mine the  character  and  distribution  of  the  different  soils 
and  their  capabilities  for  agricultural  purposes ;  the  extent 
and  value  of  the  various  deposits  of  ores  and  minerals ;  the 
distribution,  properties  and  uses  of  the  beds  of  valuable 
clays;  the  accurate  determination  of  the  areas  of  artesian- 
waters;  the  analysis  of  mineral  waters;  and  the  relative 
value  and  durability  of  the  several  kinds  of  building  stones 
and  other  structural  material. 

The  results  accomplished  by  the  survey  have  more  than 
justified  the  expenditures  made,  both  in  the  field  of  agri- 
culture and  in  mining,  since  the  relation  of  geology  to  agri- 
culture is  so  intimate  that  a  good  geologic  map  is  prac- 
tically also  a  soil  map,  and  a  thorough  geological  survey 
establishes  conclusively  the  existence  or  non-existence  of 
valuable  minerals. 


V 

CONSERVATION  AND  INTERNAL  IMPROVEMENTS 

DAMS   AND   WATER  POWER   IMPROVEMENTS 

One  of  the  many  problems  which  confronted  the  early  set- 
tlers was  that  of  obtaining  power  for  milling  grain  and 
sawing  lumber.  Water  being  the  most  available  power 
many  dams  were  erected  across  the  streams  and  rivers  of 
the  Iowa  country.  The  erection  of  such  dams  was  early 
provided  for  by  special  acts  of  the  Legislative  Assembly  of 
the  Territory.  The  records  show  that  not  less  than  forty- 
one  special  laws  of  this  character  were  passed  during  the 
Territorial  period.  Moreover,  this  policy  of  special  legis- 
lation was  continued  until  1855,  when  a  general  law  author- 
izing the  erection  of  mill  dams  and  providing  for  the  regu- 
lation of  the  same  was  enacted. 

The  special  acts  authorizing  dams  were  all  very  much 
alike :  the  location  was  usually  definitely  specified ;  the 
parties  authorized  to  build  the  dam  were  named;  a  time 
limit  within  which  the  dam  should  be  completed  was  set; 
and  the  height  of  the  dam  was  limited.  In  most  cases  locks 
of  specified  dimensions  were  required  and  were  to  be  kept  in 
good  repair  by  the  owner  of  the  dam,  who  was  to  receive  no 
toll  for  raising  boats  through  the  locks.  The  lands  of  others 
were  not  to  be  damaged ;  while  injury  to  the  dam  was  pro- 
hibited under  penalty.^^^ 

By  the  provisions  of  the  general  law  of  1855,  which  was 
entitled  **An  Act  authorizing  Mill  Dams",  the  manner  in 
which  persons  owning  lands  on  one  or  both  sides  of  a  stream 
or  water  course  could  secure  the  right  to  erect  a  dam  by 
petitioning  the  district  court  was  definitely  prescribed.    The 

84 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  85 

court's  duty  was  to  empanel  a  jury  to  examine  the  site  and 
determine  whether  or  not  any  one  would  be  damaged  by  the 
proposed  structure. ^^^  Other  provisions  similar  to  those 
contained  in  the  special  acts  were  included.  In  1864  the  act 
of  1855  relative  to  the  construction  of  dams  was  made  ap- 
plicable to  the  construction  of  mill  races ;  and  in  1872  a  law 
entitled  ''An  Act  to  Promote  Water-Power  Improvements" 
appeared  on  the  statute  books. ^^^  By  its  provisions  private 
corporations  were  authorized  to  take  and  hold  as  much  real 
■estate  as  might  be  necessary  for  the  location,  construction, 
and  use  of  canals,  conduits,  mains,  waterways,  or  other 
means  or  devices  employed  in  the  utilization  of  water  power. 
The  whole  object  of  this  law  was  to  make  possible  within 
the  State  the  wider  utilization  of  the  water  power  facilities. 
The  Code  of  1873  made  corporations  taking  advantage  of 
the  provisions  of  the  act  of  1872  specifically  subject  to  legis- 
lative control.  No  further  laws  were  enacted  on  the  subject 
until  1917  when  the  purposes  for  which  dams  could  be 
erected  were  specified  and  provision  made  to  prevent  pollu- 
tion or  injury  to  the  stream. ^^^  Agitation  for  the  wider 
utilization  of  water  power  has  been  raised  at  different  times, 
but  no  legislation  has  resulted  therefrom.  Throughout  the 
State  steam  power,  being  more  convenient  and  economical, 
has  displaced  water  power  almost  entirely  for  industrial 
purposes. 

DRAINAGE   AND   RECLAMATION 

The  problem  of  drainage  is  one  of  great  importance  to 
Iowa  land-owners  —  especially  in  the  northern  part  of  the 
State  where  the  level  stretches  of  land  are  without  natural 
drainage.  Indeed,  it  is  one  of  the  most  important  questions 
of  conservation  with  which  the  State  has  to  deal.  Of  the 
55,475  square  miles  of  land  in  Iowa,  it  is  estimated  that  more 
than  four  and  one-half  million  acres,  or  about  one-eighth  of 
the  total  area,  is  in  more  or  less  serious  need  of  artificial 


86  ECONOMIC  LEGISLATION  IN  IOWA 

drainage.  Within  the  State  there  is  a  net-work  of  streams, 
channels,  depressions,  swamps,  and  lakes  which  may  be 
improved  by  careful  drainage;  a  series  of  table  lands  is 
found  at  the  upper  ends  of  the  streams,  particularly  in  the 
northern  part  of  the  State,  which  require  the  construction 
of  artificial  drains ;  while  the  alluvial  valleys  of  the  streams, 
which  are  subject  to  overflow  and  which  are  excellent  lands 
for  agricultural  purposes,  need  protection  by  a  system  of 
levees  in  order  to  make  them  permanently  productive. ^^''^ 
All  the  natural  drains  of  the  State  discharge  into  the  Missis- 
sippi and  Missouri  rivers. 

In  order  to  understand  the  policy  of  the  State  in  regard 
to  recent  drainage  projects  the  earlier  legislation  concern- 
ing swamp  lands  in  the  State  should  be  reviewed  at  this 
point.  By  an  act  of  Congress  of  September  28, 1850,  all  the 
swamp  and  overflowed  lands  which  were  undisposed  of  at 
that  date  were  granted  to  the  State.  The  object  of  this  leg- 
islation was  to  enable  the  State,  by  the  use  of  the  proceeds 
derived  from  the  sale  of  such  lands,  to  reclaim  them  for 
agricultural  purposes  by  the  construction  of  levees  and 
drains.^^^  The  Fourth  General  Assembly,  by  an  act  ap- 
proved on  January  13, 1853,  granted  these  tracts  to  the  sev- 
eral counties  in  which  they  were  located,  on  the  condition 
that  the  counties  would  carry  out  the  provisions  of  the  grant 
relative  to  the  protection  and  reclamation  of  swamp  lands. ^^^ 
In  this  manner  the  State  instituted  the  policy  of  leaving  the 
drainage  projects  to  the  counties. 

After  the  swamp  lands  had  been  turned  over  to  the  sev- 
eral counties  the  General  Assembly,  between  1858  and  1866, 
passed  measures  relative  to  the  .manner  in  which  counties 
could  dispose  of  such  lands.^^^  The  result  of  all  this  legis- 
lation was  that  the  counties  were  allowed  to  dispose  of  their 
swamp  lands  for  not  less  than  a  dollar  and  twenty-five  cents 
per  acre.  Moreover,  the  lands  or  the  proceeds  from  the  sale 
of  such  lands  could  be  used  for  the  erection  of  public  build- 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS     87 

ings,  schools,  roads,  bridges,  or  railroads,  and  for  the  recla- 
mation of  lands.  The  business  of  disposing  of  such  lands 
was  placed  in  the  hands  of  the  several  county  boards  of 
supervisors;  and  the  obstruction  or  injury  of  drainage 
ditches  was  prohibited.  A  controversy  as  to  the  amount  of 
lands  given  to  the  State  as  swamp  lands  arose  soon  after 
the  grant  was  made  and  extended  over  many  years.  During 
the  same  period  many  measures  dealing  with  every  phase  of 
the  problem  were  placed  upon  the  statute  books. ^"^ 

As  has  already  been  stated,  the  Fourth  General  Assembly 
passed  an  act  turning  over  to  the  several  counties  of  the 
State  all  the  swamp  and  overflowed  lands  which  had  been 
granted  to  the  State  by  the  act  of  Congress  of  September  28, 
1850.  The  State  granted  these  lands  to  the  counties  respec- 
tively in  which  they  were  located  "for  the  purpose  of  con- 
structing the  necessary  levees  and  drains,  to  reclaim  the 
same ' '.  The  balance  of  the  land,  over  and  above  what  was 
needed  for  reclamation,  was  to  be  applied  to  the  building  of 
roads  and  bridges.  Provision  was  made  for  the  selection  of 
the  swamp  lands  in  the  counties  and  for  the  election  of 
drainage  commissioners  under  whose  supervision  the  lands 
were  placed;  and  the  conditions  under  which  the  commis- 
sioners could  sell  the  lands  were  prescribed.  Section  twelve 
of  the  act  required  the  county  courts  to  have  the  swamp 
lands  drained  by  the  construction  of  the  levees  and  drains 
necessary  to  reclaim  them,  and  provided  that  when  levees 
and  drains  must  pass  through  private  property  a  just  com- 
pensation should  be  made  to  the  owner  for  damages.  The 
act  further  required  surveyors  to  report  reclaimable  lands 
and  provided  that  contracts  for  the  reclamation  work  should 
be  let  to  the  lowest  responsible  bidder.  The  work  of  recla- 
mation was  to  continue  until  the  proceeds  from  the  sale  of 
the  lands  were  exhausted  or  the  work  completed.  Trespass 
and  waste  on  swamp  lands  were  prohibited  under  penalty.^*'- 

It  should  be  noted  that  in  this  manner  the  State  itself  re- 


88  ECONOMIC  LEGISLATION  IN  IOWA 

fused  to  attempt  the  drainage  and  reclamation  of  swamp 
and  overflowed  lands.  Consequently  the  drainage  work  that 
has  been  done  has  been  prosecuted  for  the  most  part  by  the 
private  owners  of  the  lands  drained,  although  recent  laws 
have  made  it  possible  for  a  number  of  owners  to  join  to- 
gether and  undertake  larger  projects  than  would  otherwise 
be  possible.  These  projects  include  the  construction  of 
ditches,  the  improvement  of  natural  drainage  channels,  and 
the  building  of  levees,  such  as  would  be  required  by  a  large 
number  of  land-owners  in  common  and  which  necessitate  the 
use  of  the  power  of  the  State  and  of  legal  procedure.  The 
scheme  provides  for  drainage  on  individual  farms  at  private 
expense  and  the  use  of  tile  or  open  drains. 

From  1862  to  the  present  day  almost  every  General  As- 
sembly has  passed  drainage  measures.  An  increasing  ap- 
preciation of  the  advantages  of  land  drainage  and  of  its 
profitableness  has  tended  to  increase  the  number  of  acts 
placed  upon  the  statute  books.  In  this  connection  no  at- 
tempt will  be  made  to  trace  these  laws  in  detail,  for  many  of 
them  are  of  minor  importance  and  space  will  not  permit 
such  treatment,  but  some  attempt  should  be  made  to  show 
the  development  in  drainage  legislation. 

The  Ninth  General  Assembly,  by  an  act  approved  on 
March  27,  1862,  defined  the  manner  of  enforcing  the  right 
of  one  land-owner  to  construct  a  drain  across  the  land  of 
another.  Application  had  to  be  made  to  a  justice  of  the 
peace  who  was  required  to  issue  a  summons  to  the  injured 
land-holder  to  answer  such  application.  A  jury  was  chosen 
to  appraise  the  damages  which  would  be  sustained  because 
of  the  proposed  drain.  If  the  jury  was  satisfied  that  the 
crossing  of  such  a  drain  was  necessary  and  proper  it  was 
required  to  certify  the  amount  of  the  damages  which,  in  its 
judgment,  would  accrue  from  the  opening  and  crossing  of 
the  proposed  drain ;  but  each  party  had  the  right  to  appeal 
to  the  district  court.    If  there  was  no  appeal,  the  drain  could 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  89 

be  constructed  upon  the  payment  of  the  damages  assessed. 
Provision  was  also  made  for  drains  crossing  the  public  high- 
ways and  for  keeping  the  same  clean  and  open.^**^ 

The  law  of  1862  was  superseded  by  a  similar  measure  in 
1870.  This  act  provided  that  applications  for  ditches  and 
drains  across  the  lands  of  another  should  be  made  to  the 
trustees  of  the  township  in  which  the  land  was  situated.  It 
was  the  duty  of  the  trustees  to  determine  whether  such 
lands  were  a  soul^ce  of  disease  to  the  inhabitants,  and 
whether  the  public  health  would  be  promoted  by  the  pro- 
posed drain.  They  were  to  determine,  also,  whether  the 
drain  was  necessary  for  the  proper  cultivation  of  the  land, 
and  whether  the  permanent  assessed  value  of  such  land 
would  be  increased  by  the  drain.^*^^  This  law  as  redrawn 
was  an  attempt  to  overcome  the  constitutional  objections 
raised  against  the  old  act  on  the  ground  that  it  allowed  pri- 
vate property  to  be  taken  for  private  purposes. 

In  1872  ''An  Act  to  Provide  for  locating,  establishing,  and 
constructing  Ditches,  Drains  and  Water-courses"  was 
passed.  This  measure  was  more  general  in  its  provisions. 
Its  purpose  was  to  provide  a  method  whereby  whole  dis- 
tricts could  be  drained.  County  supervisors  were  author- 
ized to  construct  drains,  ditches,  or  water-courses  when 
''the  same  is  demanded  by,  or  will  be  conducive  to,  the 
public  health,  convenience,  or  welfare".  Construction  was 
to  be  authorized  upon  petition  by  a  majority  of  the  resident 
land-owners  adjacent  to  the  line  of  such  ditch,  drain,  or 
water-course.  The  county  auditor  was  required  to  employ  a 
competent  engineer  to  make  a  survey  of  the  proposed  im- 
provement and  report  upon  the  feasibility  of  the  plan ;  and 
provision  was  made  for  the  compensation  of  those  who 
might  be  damaged  by  the  project.  The  work  was  divided 
into  sections  and  let  to  the  lowest  responsible  bidder;  and 
the  expense  of  the  enterprise  was  to  be  assessed  among  the 
owners  of  the  lands  benefited  by  the  location  and  construe- 


90  ECONOMIC  LEGISLATION  IN  IOWA 

tion  of  the  improvement  in  proportion  to  the  benefit  to  each 
of  them.  The  costs  and  expenses  were  apportioned  by  the 
board  of  supervisors  and  were  collected  in  the  same  man- 
ner as  other  taxes.  The  county  auditor  was  required  to 
keep  a  full  and  complete  record  of  all  the  proceedings  coi> 
nected  with  the  work.^^^ 

The  law  was  changed  to  some  extent  in  1876,  but  not 
fundamentally.  In  1878  and  in  1880  such  changes  were 
made  as  were  necessary  to  provide  for  th6  opening  of  drains 
through  two  or  more  counties,  and  railroads  were  authorized 
to  condemn  real  estate  for  channels  and  ditches  for  the 
drainage  and  better  protection  of  the  right  of  way  and  road- 
bed. The  Nineteenth  General  Assembly  amended  all  the 
drainage  laws  so  as  to  include  the  word  "levees"  as  well  as 
drains,  ditches,  and  water-courses;  and  cities  were  given 
power  to  deepen,  widen,  cover,  w^all,  or  change  the  channel 
of  water-courses  within  their  corporate  limits. ^®*^ 

Two  important  drainage  measures  were  enacted  by  the 
Twentieth  General  Assembly.  One  of  the  acts  provided  for 
the  establishment  of  drainage  districts  and  for  drainage 
projects  requiring  the  cooperation  of  many  land-holders. 
The  other  law  provided  for  the  construction  of  tile  or  other 
underground  drains  by  private  parties  through  the  lands  of 
others.  Boards  of  county  supervisors  were  authorized  by 
the  first  act  to  establish  ditches  and  drains  along  the  public 
highways;  and  all  levees  and  drains  for  which  the  funds 
were  raised  by  taxation  under  the  drainage  laws  of  the  State 
were  declared  to  be  under  the  control  of  the  board  of  super- 
visors and  were  to  be  kept  in  repair  at  the  expense  of  the 
county.  The  same  act  provided  that  upon  the  petition  of 
one  hundred  legal  voters  of  a  county,  setting  forth  that  cer- 
tain land  was  subject  to  overflow,  or  was  too  wet  for  culti- 
vation, and  that  in  the  opinion  of  the  petitioners  the  public 
health,  convenience,  or  welfare  would  be  promoted  by  drain- 
ing or  leveeing  the  same,  the  county  auditor  should  appoint 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  91 

a  competent  engineer  or  commissioner  to  examine  the  lands 
and  to  survey  and  locate  such  ditches,  drains,  levees,  and 
embankments  and  changes  in  water-courses  as  might  be 
necessary  for  the  reclamation  of  the  land.  If  the  report  of 
the  engineer  was  favorable  and  the  proposed  work  of  im- 
provement was  determined  upon,  the  board  of  supervisors 
was  given  some  discretion  in  the  manner  of  raising  the 
money  to  pay  for  the  construction.  If  in  the  opinion  of  the 
members  of  the  board  the  estimated  cost  of  the  reclamation 
project  was  greater  than  should  be  levied  and  collected  in  a 
single  year  from  the  lands  benefited,  they  were  authorized 
to  determine  the  amount  to  be  levied  each  year  and  to  issue 
drainage  bonds  of  the  county,  sell  the  same  at  not  less  than 
par,  and  devote  the  proceeds  to  the  prosecution  of  the  im- 
provement. The  bonds  were  not  to  run  for  a  longer  period 
than  fifteen  years  nor  bear  more  than  eight  per  cent  interest. 
Such  bonds  were  not  to  be  issued  in  excess  of  fifty  per  cent 
of  the  value  of  the  lands  in  the  drainage  district  as  shown  in 
the  last  assessment  for  taxation;  and  provision  was  made 
for  their  payment.^^'^ 

An  amendment  in  1888  provided  that  each  drainage  bond 
issued  should  ''express  on  its  face,  that  the  same  shall  only 
be  paid  by  taxes  assessed  levied  and  collected  on  the  lands 
within  the  district  so  designated  and  numbered  and  for  the 
benefit  of  which  district  said  bond  was  issued:  And  pro- 
vided further  that  in  no  case  shall  any  tax  be  levied  or 
collected  for  the  payment  of  such  bond  or  bonds,  or  the 
interest  thereon,  on  any  property  outside  of  the  district  so 
numbered,  designated  and  benefited.  "^^^ 

The  second  important  drainage  measure  passed  by  the 
Twentieth  General  Assembly  was  entitled  ''An  Act  to  Reg- 
ulate and  Provide  for  the  Construction  of  Tile  and  Other 
Underground  Drains  Through  the  Lands  of  Another." 
This  statute  made  it  possible  for  any  land-owner  to  con- 
struct drains  through  the  lands  of  others  in  case  such  action 


92  ECONOMIC  LEGISLATION  IN  IOWA 

was  necessary  in  order  to  obtain  suitable  drainage.^^^  The 
Supreme  Court  held  this  law  to  be  unconstitutional  "be- 
cause it  permits  one  land-owner,  for  his  own  personal  bene- 
fit, and  without  any  consideration  of  the  public  good,  to 
construct  a  'tile  or  other  underground  drain'  through  the 
lands  of  another,  thus  taking  private  property  for  private 
■jjgg  5J170  Consequently  the  statute  was  repealed  by  the 
Twenty-second  General  Assembly,  and  a  substitute  enacted 
which,  by  expressly  providing  for  notice  to  and  hearing  of 
the  aggrieved  party,  removed  the  objectionable  feature  of 
the  original  act.^"^ 

The  drainage  laws,  with  the  exceptions  noted,  remained 
almost  without  change  for  a  period  of  twenty  years  follow- 
ing 1884.  Only  minor  changes  were  made :  county  auditors 
were  required  to  appoint  a  commissioner  to  classify  lands 
affected  by  drainage  projects  and  to  apportion  costs  among 
the  same;  cities  were  authorized  to  change  the  route  of 
water-courses  and  to  straighten  and  make  other  changes  in 
them;  and  road  supervisors  were  encouraged  to  drain  the 
surface  water  from  the  highways.  The  Code  of  1897  re- 
arranged, combined,  and  amended  the  drainage  laws,  but 
made  no  fundamental  changes  therein.^^^ 

There  was  much  dissatisfaction,  however,  with  the  drain- 
age laws  of  the  State,  and  much  litigation  resulted.  By  de- 
cisions handed  down  by  the  Supreme  Court  in  1904  and 
1905  a  large  part  of  the  drainage  law  as  found  in  the  Code 
of  1897  was  declared  unconstitutional.  It  was  declared  that 
**the  provisions  of  the  Code  relative  to  the  construction  of 
drainage  ditches,  in  so  far  as  they  provide  for  an  estimate 
of  the  benefits  of  lands  not  abutting  on  the  ditch  and  the 
levy  of  taxes  thereon  for  such  improvement  without  notice 
to  the  owners  of  such  lands,  are  violative  of  the  constitu- 
tion, as  taking  private  property  without  due  process  of 
law."^'^-'^  The  different  sections  of  the  law  as  it  appears  in 
the  Code  of  1897  are  so  interdependent  that  the  unconstitu- 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  93 

tionality  of  one  section  (1946)  was  held  to  invalidate  the 
greater  part  of  the  drainage  law  (sections  1939-1951).^^"* 

The  adverse  decisions  of  the  highest  court  in  the  State 
made  the  redrawing  of  the  entire  body  of  drainage  laws 
advisable.  Accordingly,  the  Thirtieth  General  Assembly 
passed  a  curative  statute  amending  the  section  (1946)  of  the 
Code  of  1897  which  had  been  held  unconstitutional.  It  pro- 
vided for  the  giving  notice  to  all  land  owners  affected  by 
any  proposed  drainage  improvement.  The  law  was  made 
retroactive  and  its  validity  was  soon  affirmed  by  the  Su- 
preme Court.^^^ 

The  same  General  Assembly,  by  an  act  approved  on  April 
29, 1904,  and  entitled  *'An  Act  to  promote  the  public  health, 
convenience  and  welfare,  by  leveeing,  ditching  and  draining 
the  lands  of  the  state,  and  providing  for  the  establishment 
of  levees,  drainage  districts,  or  for  the  changing  of  natural 
water  courses  to  secure  better  drainage,  and  providing  for 
the  construction  of  ditches,  drains  and  watercourses  and 
prescribing  the  method  for  so  doing,  and  providing  for  the 
assessment  and  collection  of  the  costs  and  expenses  of  the 
same,  and  issuing  improvement  certificates,  or  issuing  and 
selling  bonds  therefor,  additional  to  title  ten  (X),  chapter 
two  (2)  of  the  code  and  code  supplement"  placed  upon  the 
statute  books  a  redrawn  drainage  law.^^*^  The  new  act  was 
comprehensive  and  was  so  drafted  as  to  include  the  de- 
sirable provisions  of  the  previous  laws  and  at  the  same  time 
be  free  from  constitutional  objections. 

The  first  section  of  this  act  reads  as  follows : 

The  board  of  supervisors  of  any  county  shall  have  jurisdiction, 
power  and  authority  at  any  regular,  special  or  adjourned  session,  to 
establish  a  drainage  district  or  districts,  and  to  locate  and  establish 
levees,  and  cause  to  be  constructed  as  hereinafter  provided  any 
levee,  ditch,  drain  or  water  course,  or  to  straighten,  widen,  deepen 
or  change  any  natural  water  course,  in  such  county,  whenever  the 
same  will  be  of  public  utility  or  conducive  to  the  public  health,  con- 


94  ECONOMIC  LEGISLATION  IN  IOWA 

venience  or  welfare,  and  the  drainage  of  surface  waters  from  agri- 
cultural lands  shall  be  considered  a  public  benefit  and  conducive  to 
the  public  health,  convenience,  utility  and  welfare. 

Upon  petition  the  board  of  supervisors  is  required  to 
appoint  a  competent  engineer  to  examine  the  described 
lands  and  report  to  the  county  auditor.  If  the  report  is 
favorable,  a  hearing  is  set,  claims  for  damages  are  exam- 
ined, and  damages  are  assessed  upon  the  parties  benefited 
by  the  proposed  improvement.  After  advertising  for  bids, 
a  contract  is  let  to  the  lowest  responsible  bidder  —  the  suc- 
cessful bidder  being  required  to  give  bond  equal  in  amount 
to  twenty-five  per  cent  of  the  estimated  cost  of  the  work.  In 
assessing  costs  and  damages  the  lands  are  examined  by 
commissioners  appointed  for  that  purpose.  The  lands  are 
classified  —  usually  in  forty  acre  tracts  —  in  a  graduated 
scale  of  benefits,  to  be  numbered  according  to  the  benefit  to 
be  received  because  of  the  proposed  improvement.  In 
making  the  estimate  the  lands  receiving  the  greatest  benefit 
are  to  be  marked  on  a  scale  of  one  hundred  and  those  bene- 
fited in  a  less  degree  are  marked  with  such  percentage  of 
one  hundred  as  is  proportionate  to  the  benefit  received.  On 
a  published  date  hearings  are  held  before  the  board  of 
supervisors,  who  may  increase,  diminish,  annul,  or  affirm 
the  apportionment  as  made  in  the  report  of  the  commission- 
ers in  such  manner  as  may  appear  to  the  board  to  be  just 
and  equitable.  Complete  records  are  required  to  be  kept  by 
the  county  auditor,  and  provision  is  made  for  changes  which 
it  may  be  deemed  desirable  to  make  in  the  plan  of  improve- 
ment. The  law  further  defines  the  manner  in  which  such 
improvements  may  be  constructed  across  railroad  rights  of 
way  and  across  highways. 

Improvements  established  and  constructed  under  the  pro- 
visions of  this  act  are  at  all  times  under  the  control  and 
supervision  of  the  board  of  supervisors,  who  are  charged 
with  the  duty  of  keeping  such  improvements  in  repair,  and 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS     95 

for  such  purpose  they  have  large  powers  in  ordering  en- 
largements and  changes.  All  owners  of  lands  assessed  for 
the  payment  of  the  cost  of  the  construction  of  drainage  im- 
provements have  the  right  to  use  the  improvement  as  an 
outlet  for  lateral  drains.  Sub-drainage  districts  are  defined 
and  provision  is  made  for  enlargements  and  for  new 
districts. 

The  payment  of  the  improvement  tax  is  arranged  in  such 
a  manner  as  to  give  the  land-owners  the  option  of  paying 
the  whole  assessment  at  once  or  in  installments.  Where  the 
estimated  cost  of  the  improvement  is  greater  than  should 
be  levied  in  a  single  year  the  board  of  supervisors  may  fix 
the  amount  that  shall  be  levied  and  collected  each  year  and 
issue  drainage  bonds  of  the  county  which  may  be  devoted  at 
par  to  the  payment  of  the  work  as  it  progresses.  Such 
bonds  are  not  allowed  to  run  for  a  longer  period  than  fifteen 
years,  and  the  terms  and  times  of  payment  of  the  bonds  are 
fixed  by  the  board.  The  amount  of  bonds  issued  shall  in  no 
case  exceed  the  benefits  assessed.  Each  bond  issued  must 
show  expressly  upon  its  face  that  it  is  to  be  paid  only  by  a 
tax  assessed,  levied,  and  collected  on  the  lands  within  the 
district  so  designated  and  numbered,  and  for  the  benefit  of 
which  district  such  bond  was  issued.  No  tax  shall  be  le\ded 
or  collected  for  the  payment  of  such  bonds  or  interest  on 
such  bonds  on  any  property  outside  the  district  so  num- 
bered, designated,  and  benefited. 

Adjoining  land-holders  may  mutually  agree  to  establish  a 
drainage  district.  When  such  an  agreement  is  filed  with  the 
county  auditor,  the  improvement  is  carried  out  in  the  same 
manner  as  other  drainage  projects.  Two  or  more  counties 
may  work  out  drainage  districts  after  much  the  same  plan 
as  that  prescribed  for  districts  wholly  within  one  county  — 
the  boards  of  supervisors  of  the  several  counties  working- 
together.  Drainage  districts  may  also  include  incorporated 
cities  and  towns.     Boards  of  supervisors  may,  when  it  is 


96  ECONOMIC  LEGISLATION  IN  IOWA 

necessary,  purchase  a  right  of  way  for  a  drainage  outlet 
from  an  adjoining  State;  and  they  may  employ  watchmen 
and  engineers.  County  auditors  must  keep  a  record  of  all 
papers  pertaining  to  drainage  projects.  Special  provision 
is  made  for  the  draining  of  highways. 

The  same  General  Assembly  passed  three  other  acts  re- 
lating to  drainage  projects:  one  was  amendatory;  another 
provided  for  pumping  stations  in  levee  districts;  and  the 
third  related  to  the  drainage  of  surface  waters. ^"^  Further- 
more, the  Thirtieth  General  Assembly  passed  a  joint  reso- 
lution which  was  approved  on  April  9,  1904,  proposing  an 
amendment  to  the  Constitution  of  the  State  of  Iowa.  This 
amendment  is  additional  to  section  eighteen  of  article  one 
—  the  section  on  eminent  domain  —  which  unamended  reads 
as  follows: 

Private  property  shall  not  be  taken  for  public  use  without  just 
compensation  first  being  made,  or  secured  to  be  made  to  the  owner 
thereof,  as  soon  as  the  damages  shall  be  assessed  by  a  jury,  who 
shall  not  take  into  consideration  any  advantages  that  may  result  to 
said  owner  on  account  of  the  improvement  for  which  it  is  taken. 

The  proposed  amendment  added  the  following  paragraph 
to  the  above  section: 

The  General  Assembly,  however,  may  pass  laws  permitting  the 
owners  of  lands  to  construct  drains,  ditches  and  levees  for  agricul- 
tural, sanitary  or  mining  purposes,  across  the  lands  of  others,  and 
provide  for  the  organization  of  drainage  districts,  vest  the  proper 
authorities  with  power  to  construct  and  maintain  levees,  drains  and 
ditches,  and  to  keep  in  repair  all  drains,  ditches  and  levees  hereto- 
fore constructed  under  the  laws  of  the  state,  by  special  assessments 
upon  the  property  benefited  thereby.  The  General  Assembly  may 
provide  by  law  for  the  condemnation  of  such  real  estate  as  shall  be 
necessary  for  the  construction  and  maintenance  of  such  drains, 
ditches  and  levees,  and  prescribe  the  method  of  making  such  con- 
demnation. 

The  proposed  amendment,  having  been  ratified  by  the 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  97 

Thirty-first  and  Thirty-second  General  Assemblies,  was 
submitted  to  the  electors  at  the  general  election  in  1908  and 
by  them  adopted.^'^^  After  the  amendment  to  the  Constitu- 
tion was  proposed  in  1904  no  fundamental  changes  and  few 
alterations  of  importance  were  made  in  the  drainage  laws 
of  the  State  until  1909. 

Besides  making  several  minor  changes  in  the  drainage 
laws  the  General  Assembly,  in  1909,  enacted  a  statute  en- 
titled **An  Act  to  create  the  Iowa  State  drainage,  water- 
ways and  conservation  commission,  and  defining  the  powers 
and  duties  of  the  same."^'^^  This  measure  provided  for  a 
commission  of  seven  members  to  be  appointed  by  the  Gov- 
ernor. The  commissioners  were  to  serve  without  compen- 
sation ;  they  were  allowed  one  secretary ;  and  they  were  to 
prepare  a  complete  report  of  all  the  investigations  and  rec- 
ommendations of  the  commission  and  present  the  same  to 
the  Governor  before  the  convening  of  the  next  General  As- 
sembly in  1911,  at  which  time  the  term  of  service  of  the 
commission  ceased.  The  Governor  appointed  seven  able 
men  to  serve  on  the  commission.^^^  These  men  accepted  the 
appointment  and  made  a  valuable  study  of  the  problem  of 
the  conservation  of  the  natural  resources  of  the  State.  The 
act  defined  the  duties  of  the  commission,  in  so  far  as  they 
related  to  drainage,  as  follows : 

It  shall  be  the  duty  of  this  commission  to  investigate  the  entire 
question  of  the  relation  of  the  state  to  its  waters,  its  forests,  its 
soils,  and  its  minerals.  It  is  the  intent  and  purpose  of  this  bill  that 
these  investigations  shall  include  the  following :  — 

Art.  1.  The  present  condition  of  public  drainage  in  Iowa  and  the 
benefits  which  can  be  derived  by  securing  the  best  of  drainage  engi- 
neering practice,  the  most  economical  administration  of  drainage 
projects,  and  a  more  economical  method  of  financing  at  lower  rates 
of  interest,  and  show  methods  by  which  all  of  these  benefits  may  be 
secured ; 

Art.  2.   The  present  condition  of  all  overflow  of  flood  plain  lands 


98  ECONOMIC  LEGISLATION  IN  IOWA 

of  Iowa,  showing  losses  due  by  floods  in  the  destruction  of  farm 
crops,  the  losses  due  by  the  destruction  of  property,  in  the  cities, 
towns,  and  built-up  districts,  the  losses  due  by  the  withdrawal  from 
crop  cultivation  of  such  flooded  lands,  and  recommending  the  proper 
methods  of  prevention  of  such  flood  conditions ; 

Art.  3.  The  survey  of  at  least  one  representative  Iowa  river  to 
ascertain  the  available  dam  sites  and  the  potential  water-power  and 
report  the  best  method  of  procedure  to  bring  about  development  of 
the  water-powers  of  the  state. ^^^ 

Only  $2500  per  year  for  two  years  was  appropriated,  but 
the  commissioners  assumed  the  duties  and  made  a  study  of 
Iowa's  economic  problems  as  the  time  and  funds  at  their 
disposal  would  permit.  In  the  report  submitted  to  the  Gov- 
ernor on  December  31,  1910,  the  commission  made  some 
important  recommendations  as  to  legislation  on  the  subjects 
of  drainage  and  levees.  The  substance  of  these  recom- 
mendations was  as  follows : 

1.  Since  much  over-flowed  land  could  be  reclaimed  by 
clearing  out  and  straightening  the  channels  of  streams  and 
by  constructing  levees  to  prevent  overflows,  since  such  work 
is  largely  of  a  public  nature,  and  since  the  cost  thereof 
would  be  too  great  for  private  parties  to  bear,  the  commis- 
sion recommended  that  such  legislation  be  enacted  as  would 
make  this  type  of  improvements  possible.  The  cost  in- 
volved should  be  borne  by  the  national  and  State  govern- 
ments jointly,  or  by  the  several  counties  concerned  and  by 
the  property  more  immediately  affected,  as  the  case  might 
be. 

2.  The  matter  of  establishing  a  standard  test  for  drain 
tile  should  be  referred  to  the  Engineering  Experiment  Sta- 
tion of  the  Iowa  State  College  of  Agriculture  and  Mechanic 
Arts,  which  should  make  the  necessary  tests,  preliminary  to 
the  preparation  of  a  published  report. 

3.  The  commission  pointed  out  the  fact  that  contractors 
are  usually  required  to  accept  all  or  a  part  of  the  contract 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  99 

price  in  improvement  certificates  or  bonds  or  both.  Since 
they  must  incur  the  expense  of  marketing  the  bonds  and  the 
inconveniences  in  connection  therewith  they  must  add  mate- 
rially to  their  bids.  To  minimize  this  extra  expense  the 
commission  made  two  suggestions :  the  feasibility  of  invest- 
ing a  part  of  the  public  school  fund  in  drainage  securities ; 
and  the  enactment  of  legislation  that  would  put  the  credit 
and  borrowing  power  of  the  counties  and  of  the  State  back 
of  drainage  securities. 

4.  Damages  should  be  made  to  depend  solely  upon  the 
merit  of  the  claim,  without  regard  to  the  time  of  filing  the 
claim. 

5.  Notices  calling  for  bids  for  contracts  should  be  pub- 
lished in  at  least  one  standard  contracting  or  engineering 
journal  of  general  circulation,  in  addition  to  publication  in 
the  local  newspapers. 

6.  The  policy  of  issuing  improvement  certificates  should 
l3e  discontinued  in  favor  of  the  suggestions  above  set  forth. 

7.  There  should  be  created  a  permanent  drainage,  wa- 
terways, and  conservation  commission  of  three  members, 
one  of  whom  should  be  known  as  the  Commissioner  of 
Drainage  and  Waterways. 

8.  The  drainage  and  waterways  commissioner  should  be 
allowed  a  regular  salary,  and  his  services  should  be  avail- 
able to  the  boards  of  county  supervisors  upon  applica- 
tion.^^2 

All  these  recommendations  were  supported  by  data  show- 
ing why  they  were  desirable  and  indicating  something  of 
the  importance  of  improved  drainage  laws  to  the  State. 

By  the  Thirty-fourth  General  Assembly  two  of  the  recom- 
mendations made  by  the  commissioners  were  enacted  into 
law  — namely  the  suggestion  relative  to  the  time  of  filing 
claims  for  damages  and  the  recommendation  in  regard  to 
publishing  notices  of  work  to  be  let  to  bidders  in  a  contract- 
ing journal  of  general  circulation.^^^    The  Thirty-fifth  Gen- 


100  ECONOMIC  LEGISLATION  IN  IOWA 

eral  Assembly  provided  for  the  election  of  trustees  for  the 
management  of  pumping  stations;  and  in  1915  provision 
"was  made  to  place  the  management  of  drainage  districts 
under  trustees  to  be  elected  by  the  land-owners  assessed  for 
the  benefit  of  such  districts.  The  trustees  so  elected  are 
given  large  powers  in  managing  drainage  districts,  but  they 
are  not  considered  to  be  public  officers. ^^^  Further  regula- 
tions and  conditions  relative  to  interstate  drainage  projects 
were  made  and  the  drainage  of  highways  was  provided  for 
in  much  the  same  manner  as  districts  are  drained.  Several 
important  acts  amendatory  to  the  drainage  laws  were 
passed  in  1917,  but  no  fundamental  changes  were  made  in 
the  law.  Certain  sections  were  made  more  specific,  others 
were  rewritten  for  the  sake  of  clearness,  and  some  addi- 
tions were  made  to  cover  omissions. ^^^ 

An  examination  of  the  drainage  laws  of  the  State  shows 
the  principal  features  of  the  system  in  Iowa  to  be  as  follows : 

1.  The  county  boards  of  supervisors  administer  the  law. 
The  work  is  usually  within  a  county,  but  two  or  more  coun- 
ties may  cooperate.  The  State  government  itself  takes  no 
direct  part  in  the  work. 

2.  Proceedings  are  initiated  by  petition  to  the  county 
board  of  supervisors  or  to  the  county  auditor  — •  the  petition 
being  signed  by  a  certain  number  of  land-owners.  The 
petition  describes  the  lands  proposed  to  be  drained  and  the 
general  plan  of  the  improvement,  and  asks  for  the  estab- 
lishment of  a  drainage  district.  It  must  be  accompanied  by 
a  bond  to  cover  all  expenses  in  case  the  drainage  district 
petitioned  for  is  not  established. 

3.  The  board  of  supervisors  then  appoints  a  competent 
engineer  to  examine  the  feasibility  of  the  proposed  improve- 
ment and  file  a  report  containing  a  complete  description  of 
the  lands  affected,  a  description  of  the  route  of  the  drains, 
the  probable  cost,  and  such  other  facts  and  recommenda- 
tions as  he  may  deem  material. 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  101 

4.  The  county  supervisors  then  examine  the  returns  of 
the  engineer.  If  the  plan  is  approved  by  them  notice  is 
given  to  the  owner  of  each  tract  of  land  in  the  proposed  dis- 
trict, and  a  hearing  is  held  at  which  objections  to  the  work 
and  claims  for  damages  are  considered.  The  board  may 
then  establish  the  district  or  dismiss  the  petition  as  they 
may  deem  best. 

5.  Upon  a  decision  to  establish  the  district  the  board  ap- 
points an  engineer  as  a  commissioner  to  make  a  permanent 
survey  showing  the  levels  and  elevation  of  each  forty  acre 
tract  of  land  affected.  The  board  then  determines  the 
amount  of  damages  which  is  to  be  paid  by  the  lands  bene- 
fited. 

6.  The  board  appoints  an  engineer  to  supervise  the 
work;  and  after  advertising  for  bids,  lets  the  contracts  for 
the  work  to  the  lowest  responsible  bidder. 

7.  Three  commissioners  are  appointed  by  the  board  of 
supervisors  to  inspect  and  classify  the  lands  benefited,  and 
to  make  an  equitable  apportionment  of  the  costs,  expenses, 
costs  of  construction,  fees,  and  damages  assessed  for  the 
construction  of  the  improvement,  and  to  report  in  writing 
to  the  board.  These  assessments  are  a  first  lien  upon  the 
property  benefited  and  are  collectible  in  the  same  manner  as 
taxes.  In  order  to  make  the  payment  less  burdensome 
drainage  bonds  may  be  issued  to  the  extent  of  the  benefits. 
The  bonds  must  not  bear  more  than  six  per  cent  interest 
nor  run  for  a  longer  period  than  fifteen  years,  and  must  not 
be  sold  at  less  than  par. 

It  is  to  be  noted  that  land-owners  are  well  protected :  due 
notice  of  all  steps  in  the  procedure  which  may  affect  their 
interests  is  required.  They  may  file  protests  against  pro- 
ceedings or  object  at  public  hearings  to  the  allowance  of 
damages  and  the  assessment  of  benefits,  and  they  may  ap- 
peal to  the  State  courts.  In  short  the  principles  underlying 
drainage  procedure  in  Iowa  are  these:  all  proceedings  are 


102  ECONOMIC  LEGISLATION  IN  IOWA 

commenced  by  petition  made  by  interested  landholders; 
costs  and  damages  are  paid  by  the  land-owners  in  propor- 
tion to  the  benefits  received  by  each  of  them ;  and  protection 
to  everyone  interested  is  provided.  In  the  matter  of  drain- 
age Iowa  has  done  very  creditable  work.  The  drainage 
laws  are  on  the  whole  satisfactory  and  progressive.  Atten- 
tion has  been  called  to  the  absence  of  State-wide  authority 
in  this  field  of  activity ;  and  to  this,  no  doubt,  are  due  many 
of  the  difficulties  encountered  in  the  reclamation  of  the 
swamp  and  wet  lands  of  the  State. 

CONSEEVATION  OF  FISH  AND  GAME 

During  the  early  days  fish  and  game  were  plentiful  in  the 
Iowa  country :  the  tables  of  the  pioneers  were  supplied  with 
an  abundance  of  good  meats  at  the  expense  of  only  a  few 
hours  in  hunting  or  fishing.  As  the  country  became  more 
thickly  settled  the  wild  game  was  killed  or  driven  further  to 
the  west  until  the  scarcity  of  wild  game  became  very  notice- 
able and  its  loss  keenly  felt.  Thus  the  importance  of  pro- 
tecting the  wild  game  of  the  State  was  forced  upon  the 
attention  of  the  law-makers  at  an  early  date. 

The  first  legislation  for  the  protection  of  game  was  en- 
acted in  1857.  The  statutes  passed  at  this  time  made  it  un- 
lawful for  any  person,  except  on  his  own  premises,  to  kill, 
ensnare  or  trap  any  wild  deer,  elk  or  fawn,  wild  turkey, 
prairie  hen,  grouse,  or  quail  between  February  1st  and  July 
15th.  Furthermore,  the  sale  of  all  such  game  was  forbidden 
during  the  closed  season,  and  having  such  game  in  one's 
possession  was  prima  facie  evidence  of  a  violation  of  the 
law.  Trespassing  for  the  purpose  of  hunting  during  the 
closed  season  was  forbidden  and  a  penalty  was  provided  for 
violation  of  the  act.^*^ 

In  1862  a  measure  similar  to  the  law  of  1857,  entitled  ''An 
Act  to  provide  for  the  preservation  of  Trout  in  the  waters 
of  this  State",  was  passed,  making  it  unlawful  to  take  trout 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  103 

except  by  hook  and  line  between  September  IStli  and  De- 
cember 31st;  and  in  1872  the  taking  of  any  fish  in  the  waters 
of  the  State,  except  bayous,  except  with  hook  and  line,  snare, 
or  spear  was  prohibited.^^^ 

The  game  law  was  redrawn  in  1868;  the  closed  season 
limits  were  again  changed;  the  buying  or  selling  of  game 
during  the  closed  season  was  declared  unlawful;  common 
carriers  were  made  liable  to  punishment  for  having  game  in 
their  possession  unlawfully  during  the  closed  season;  and 
the  penalties  for  the  violation  of  the  law  were  made  more 
severe.  Two  years  later  it  was  declared  unlawful  to  kill  or 
trap  birds,  or  to  destroy  the  nests  and  eggs  of  any  of  the 
birds  of  the  State,  except  birds  of  prey  and  game  birds 
during  the  open  season.^^^  This  was  an  important  step, 
since  many  birds  are  of  almost  inestimable  value  to  the 
farmers  of  the  State.  They  destroy  injurious  insects  of  all 
kinds  and  consume  the  seeds  of  many  varieties  of  harmful 
w^eeds. 

In  1874  a  law  was  passed  which  provided  for  the  appoint- 
ment of  a  State  fish  commission  of  three  members  by  the 
Governor  of  the  State.  The  general  duties  of  the  commis- 
sioners consisted  in  forwarding  the  movement  to  restore 
fish  to  the  rivers  and  waters  of  the  State,  to  stock  the  lakes 
and  streams  with  fish,  and  to  examine  methods  of  securing 
the  passage  of  fish  over  dams.  The  act  further  provided 
that  dams  thereafter  constructed  must  have  fishways,  and 
it  prohibited  the  obstructions  to  the  free  passage  of  fish  and 
the  use  of  drugs  or  explosives  in  taking  fish.^^^  This  law 
was  amended  in  1876.  The  Board  of  Fish  Commissioners 
was  abandoned  for  one  commissioner  with  greatly  increased 
powers.  Provision  was  made  for  hatching  and  distributing 
fish;  and  seining  was  prohibited.  Two  years  later  the  Fish 
Commissioner  was  granted  a  regular  salary  of  $1200  per 
year;  and  the  appropriation  for  the  care  and  propagation 
of  fish  was  increased.^^^    Many  amendatory  acts  and  laws 


104  ECONOMIC  LEGISLATION  IN  IOWA 

of  minor  importance  were  passed  from  1874  until  the  adop- 
tion of  the  Code  of  1897.  Of  these  the  most  important  had 
to  do  with  the  establishment  of  fish  hatcheries,  changing  the 
dates  of  closed  seasons,  making  the  laws  more  inclusive, 
and  providing  for  the  better  enforcement  of  the  laws.^^^ 

The  Code  of  1897  created  the  office  of  State  Fish  and 
Game  Warden.  Appointed  by  the  Governor,  the  warden  is 
allowed  a  regular  salary.  The  duties  of  the  office  consist 
(1)  of  managing  the  State  fish  hatcheries,  which  are  main- 
tained for  the  purpose  of  stocking  the  waters  of  the  State 
with  native  fish,  (2)  of  enforcing  the  laws  relative  to  fish 
and  game  protection,  and  (3)  of  making  biennial  reports  to 
the  Governor.^^2  Steps  were  taken  in  1898  to  provide  for  a 
more  strict  enforcement  of  the  fish  and  game  laws.  Game 
and  fish  may  be  seized,  under  the  provisions  of  this  act, 
without  warrant  by  wardens  or  peace  officers.  Two  years 
later  non-residents  who  wished  to  hunt  on  Iowa  soil  were 
required  to  obtain  a  license  from  the  auditor  of  the  county 
in  which  they  wished  to  hunt.  In  1909  the  law  was  changed 
so  as  to  require  a  hunting  license  of  anyone  wishing  to  hunt 
game  with  a  gun,  and  the  amount  of  game  which  could  be 
taken  was  prescribed  and  penalties  for  the  violation  of  the 
laws  were  increased.  Licenses  were  also  required  of  those 
wishing  to  fish  in  the  rivers  or  boundary  rivers  of  the  State 
with  the  use  of  nets  or  seins,  and  non-residents  of  the  State 
are  now  required  to  take  out  a  license  in  order  to  fish  in  any 
manner  in  the  streams  or  lakes  of  the  State.  Moreover,  the 
title  of  ownership  of  all  w^ild  birds,  game,  and  fish  has  been 
established  in  the  State.^^^ 

The  early  protective  laws  were  enacted  from  purely  eco- 
nomic motives  —  the  purpose  being  to  save  to  the  people  of 
the  State  a  supply  of  one  of  the  necessities  of  life.  These 
laws  took  the  form  of  providing  for  closed  seasons  during 
which  game  could  not  lawfully  be  destroyed.    They  applied 


CONSERVATION  AND  INTERNAL  IMPROVEMENTS  105 

to  a  great  variety  of  game  birds  and  to  many  flesh-producing 
animals.  As  the  State  became  more  densely  settled  game  as 
an  article  of  food  disappeared,  for  game  does  not  thrive  on 
cultivated  lands  and  in  a  settled  region.  And  so  the  laws 
for  the  protection  of  game  became  less  important.  To  be 
sure  these  laws  have  been  kept  upon  the  statute  books  and 
have  been  added  to  from  time  to  time ;  but  the  purpose  of 
such  legislation  is  the  preservation  of  game  for  the  sports- 
man, rather  than  for  those  who  desire  to  hunt  for  food. 

With  the  care  and  propagation  of  fish,  on  the  other  hand, 
the  economic  motive  is  still  important.  Fish  thrive  in  the 
lakes  and  streams  and  form  an  important  article  of  diet. 
But  the  location  of  industries  on  the  rivers  of  the  State  and 
the  policy  of  draining  city  sewage  into  the  rivers  have 
caused  a  considerable  decrease  in  the  stock  of  fish.  Dams 
on  many  of  the  rivers  and  streams  were  not  constructed 
with  fishways,  and  the  fish  have  been  unable  to  go  up  the 
streams.  Besides,  great  wastefulness  in  fishing  methods 
has  long  continued.  Legislation  to  remedy  these  unfavor- 
able conditions  is  still  needed, 

A  survey  of  the  legislation  relative  to  fish  and  game  in 
this  State  shows  two  methods  of  meeting  the  problem  to 
prevent  their  extermination  as  valuable  food  products.  One 
method  has  been  prohibitory:  closed  seasons  have  been 
established  for  a  part  of  the  year  or  in  some  cases  for  a 
series  of  years  for  particular  game ;  the  buying,  selling,  and 
transportation  of  fish  and  game  is  prohibited  or  restricted ; 
methods  of  taking  and  the  number  which  may  lawfully  be 
taken  are  prescribed,  as  well  as  the  size  in  regard  to  fish; 
attempts  are  made  to  prevent  water  pollution ;  and  hunting 
and  fishing  without  license  is  forbidden.  The  other  method 
is  more  constructive:  fish  hatcheries  are  conducted,  from 
which  the  fish  are  distributed  to  the  different  waters  of  the 
State;  waters  are  restocked  and  fishways  are  required  in 
the  construction  of  dams;  game  preserves  are  established 


106  ECONOMIC  LEGISLATION  IN  IOWA 

and  stocked  with  game ;  and  the  title  of  all  game  and  fish  in 
the  State  is  declared  to  be  vested  in  the  State.  The  Fish 
and  Game  Warden  has  done  good  work,  but  this  officer  has 
been  hampered  by  lack  of  adequate  means  and  power  of 
enforcing  the  laws. 


VI 

GENERAL  CORPORATIONS  ^^^ 

CORPORATION  LAWS 

The  purpose  of  this  chapter  will  be  to  indicate  the  devel- 
opment of  corporation  legislation  in  Iowa  as  reflected  in 
the  statutes  and  codes.  Furthermore,  only  those  corpora- 
tions which  are  established  and  conducted  for  pecuniary 
profit  will  be  treated  in  this  connection.  It  is  a  fact  that  the 
corporation  laws  in  Iowa  contain  very  few  fundamental 
features  which  are  not  found  in  the  legislation  of  other 
States.  Moreover,  the  regulatory  legislation  in  this  State 
has  neither  been  extreme  nor  hostile  to  corporations. 

There  was  no  general  incorporation  law  enacted  during 
the  Iowa  Territorial  period,  although  many  corporations 
were  formed  for  a  variety  of  purposes.  Canal,  turnpike, 
milling,  and  insurance  companies  were  incorporated.  All 
corporations,  whatever  their  purpose,  were  chartered  by 
special  acts  of  the  legislature.  This  is  not  surprising,  since 
it  had  been  the  practice  of  the  Wisconsin  Territory  to  in- 
corporate business  enterprises  by  special  acts. 

One  of  the  most  important  measures  relative  to  corpora- 
tions enacted  during  the  Territorial  period  was  ''An  Act 
relative  to  limited  Partnerships  ".^^^  This  law  which  was 
passed  by  the  First  Legislative  Assembly  of  the  Territory 
was  taken  directly  from  the  laws  of  the  original  Territory 
of  Wisconsin.  It  provided  for  the  formation  of  limited 
partnerships  in  much  the  same  manner  as  ordinary  busi- 
ness corporations  are  now  organized,  and  was  the  first  act 
which  attempted,  in  a  general  way,  to  provide  for  the  organ- 
ization and  control  of  ordinary  business  enterprises  other 

107 


108  ECONOMIC  LEGISLATION  IN  IOWA 

than  simple  partnerships  or  individual  enterprises.  The 
purposes  for  which  a  limited  partnership  could  be  formed 
under  this  act  were  ' '  for  the  transaction  of  any  agricultural, 
mercantile,  mechanical,  mining,  smelting,  or  manufacturing 
business  ....  and  for  no  other  purpose  whatever". 
Such  partnerships  were  to  be  composed  of  two  classes  of 
partners  —  general  and  special.  General  partners  had 
authority  to  transact  the  business,  to  sign  for  the  partner- 
ship, and  to  bind  the  same.  Such  partners  were  to  be 
jointly  and  severally  responsible  as  ordinary  general  part- 
ners. Special  partners  were  to  contribute  actual  cash  as 
capital  to  the  common  stock.  They  were  limited  in  their 
liability  for  the  debts  of  the  enterprise  to  the  amount  of 
capital  which  each  contributed. 

Persons  wishing  to  form  a  limited  partnership  were  re- 
quired to  make  and  severally  sign  a  certificate  containing 
the  following  information :  the  name  under  which  the  part- 
nership was  to  be  conducted ;  the  general  nature  of  the  busi- 
ness to  be  transacted;  the  names  of  all  the  general  and 
special  partners,  specifying  which  were  general  and  which 
were  special  and  noting  their  respective  places  of  residence ; 
the  amount  of  capital  contributed  by  each  special  partner  to 
the  common  stock ;  and  the  period  for  which  the  partnership 
was  to  endure,  specifying  the  date  of  beginning  and  the  date 
of  termination. 

This  certificate  was  to  be  acknowledged  and  certified  in 
the  same  manner  as  deeds  were  then  certified.  It  was  then 
to  be  recorded  in  the  office  of  the  register  of  deeds  in  the 
county  in  which  the  principal  place  of  business  of  the  part- 
nership was  located.  Such  certificates  were  to  be  recorded 
in  a  book  kept  for  that  purpose,  and  were  to  be  open  to 
public  inspection.  Furthermore,  it  was  necessary  for  one  or 
more  of  the  general  partners  to  file  an  affidavit  stating  that 
the  sums  specified  in  the  certificate  as  having  been  contrib- 
uted by  the  special  partners  to  the  common  stock  were 


GENERAL  CORPORATIONS  109 

actually  paid  in  cash.  Failure  to  comply  with  the  provi- 
sions relative  to  organization  rendered  all  the  interested 
parties  liable  as  general  partners. 

The  terms  of  the  partnership  were  to  be  published;  and 
subsequent  alterations  in  the  names  of  the  partners,  in  the 
character  of  the  business,  in  the  capital  or  shares,  or  in  any 
matter  specified  in  the  original  certificate  served  to  dissolve 
the  partnership  and  rendered  each  partner  individually 
liable  as  a  general  partner.  Special  partners  were  per- 
mitted to  examine  into  the  progress  of  the  business  and  to 
advise  as  to  its  management,  but  they  could  neither  transact 
any  of  the  firm's  business  themselves  nor  be  employed  for 
that  purpose  as  agent  or  attorney.  Other  sections  of  the 
law  provided  protection  to  creditors  and  prescribed  the 
duties  and  liabilities  of  the  partners  in  greater  detail.  The 
form  of  organization  provided  for  in  this  statute  presents 
many  features  similar  to  the  business  corporations  of  the 
present  day,  but  it  differs  from  them  in  several  important 
points,  the  most  noticeable  of  which  are  the  non-transfera- 
bility  of  shares  and  the  limited  duration  of  the  partnership. 

Besides  the  limited  partnership  law  there  were  twenty- 
five  special  incorporating  acts  passed  during  the  Territorial 
period.  These  special  acts  provided  for  the  organization  of 
as  many  separate  concerns,  of  which  sixteen  were  milling  or 
manufacturing  companies,  five  were  insurance  companies, 
one  was  a  bridge  company,  one  a  turnpike  company,  one  a 
mining  company,  and  one  a  land  company.^^^ 

An  examination  of  these  incorporating  acts  reveals  the 
evils  of  special  incorporation  legislation.  No  two  of  the 
laws  were  alike.  Some  of  the  charters  provided  in  detail 
for  the  organization  and  management  of  the  concern,  while 
others  simply  stated  that  the  company  was  authorized  to 
exercise  the  usual  and  necessary  powers  of  a  corporate 
body.  There  was  no  established  policy:  corporate  privi- 
leges were  granted  and  regulations  imposed  as  the  mood  of 
the  particular  legislature  might  dictate. 


110  ECONOMIC  LEGISLATION  IN  IOWA 

The  corporators  in  some  of  the  companies  thus  formed 
were  specifically  deprived  of  limited  liability,  which  is  one 
of  the  chief  advantages  of  incorporation.  The  personal 
liability  of  the  stockholders  for  the  corporate  debts  was  in 
some  instances  to  be  applied  only  in  case  of  insolvency  or 
failure  of  the  company.  In  some  charters  there  is  nothing 
said  about  the  personal  liability  of  the  stockholder,  while 
others  plainly  incorporate  the  doctrine  of  limited  liability. 
The  principle  of  control  by  the  majority  of  the  stock  was 
developed  in  some  instances,  but  not  as  a  rule.  Neither  was 
the  method  of  voting  stock  uniform.  Some  of  the  charters 
were  of  limited  duration,  and  the  time  varied  from  twenty 
to  fifty  years.  The  regulations  imposed  in  the  various 
charters  were  not  uniform.  Several  acts  contained  a  clause 
to  the  effect  that  the  act  was  subject  to  alteration,  amend- 
ment, or  repeal  by  any  future  legislature.  Taken  all  to- 
gether these  special  incorporating  acts  reveal  a  recognition 
of  the  principles  of  limited  liability,  of  the  law  of  shares,  of 
time  limit,  and  of  regulation.  All  of  these  principles  were 
not,  however,  incorporated  in  any  one  charter. 

The  practice  of  granting  charters  to  corporations  by  spe- 
cial acts  of  the  legislature  proved  to  be  very  unsatisfactory 
and  there  was  inserted  in  the  Constitution  of  Iowa,  adopted 
in  1846,  the  provision  that  '' Corporations  shall  not  be  cre- 
ated in  this  state  by  special  laws,  except  for  political  or 
municipal  purposes ;  but  the  general  assembly  shall  provide 
by  general  laws,  for  the  organization  of  all  other  corpora- 
tions ".^^'^  This  same  article  of  the  Constitution  prohibited 
the  formation  of  banking  corporations. 

In  accordance  with  the  constitutional  provision  the  First 
General  Assembly  passed  a  law  entitled  "An  Act  to  author- 
ize General  Incorporations",  which  was  approved  on  Feb- 
ruary 22,  1847.  This  law  was  not  only  the  first  general 
legislation  on  the  subject  of  corporations  enacted  in  the 
State,  but  has  formed  the  basis  of  all  subsequent  legislation 


GENERAL  CORPORATIONS  111 

pertaining  to  corporations.    The  full  text  of  the  statute  is 
as  follows : 

Section  1.  Be  it  enacted  by  the  Ge^ieral  Assembly  of  the  State  of 
loiva,  That  any  number  of  persons  may  hereafter  incorporate  them- 
selves for  the  transaction  of  any  business  which  may  be  the  lawful 
subject  of  a  general  partnership,  including  the  establishment  of 
ferries,  the  construction  of  railroads,  and  other  works  of  internal 
improvement. 

Sec.  2.  They  may  make  such  regulations  as  they  please  in  relation 
to  the  management  of  their  business,  not  incompatible  with  an 
honest  and  legal  purpose. 

Sec.  3.  They  may  render  their  individual  interest  in  the  cor- 
poration transferable. 

See.  4.  The  death  of  any  of  its  members  shall  not  terminate  the 
corporation. 

Sec.  5.  They  may  sue  and  be  sued  in  their  corporate  name,  and 
have  a  common  seal. 

Sec.  6.  They  may  exempt  private  property  from  corporate  debts, 
and  may  hold,  buy  and  sell  real  estate:  Provided,  The  requisitions 
of  this  act  are  substantially  complied  with. 

Sec.  7.  Previous  to  commencing  business  they  shall  adopt  articles 
of  incorporation,  which  shall  be  recorded  in  the  office  of  the  recorder 
of  deeds  in  the  county  where  the  principal  place  of  business  is ;  and, 
further,  all  corporations  for  the  purpose  of  constructing  railroads, 
canals  and  other  works  of  internal  improvement,  shall  file  a  certified 
copy  of  their  articles  of  association  in  the  office  of  the  secretary. 

Sec.  8.  A  notice  shall  be  published  four  weeks  in  succession  in 
some  newspaper  in  such  county,  or,  if  no  newspaper  be  printed 
therein,  then  such  publication  shall  be  made  in  some  newspaper  as 
convenient  as  practicable  thereto. 

Sec.  9.  A  failure  to  comply  with  either  of  the  requisitions  con- 
tained in  the  two  preceding  sections,  shall  render  their  individual 
property  liable  on  all  contracts. 

Sec.  10.    The  notice  required  by  the  eighth  section  shall  contain : 

First  —  The  name  of  the  corporation,  and  the  principal  places  of 
transacting  business. 

Second  —  The  general  nature  of  the  business  to  be  transacted. 


112  ECONOmC  LEGISLATION  IN  IOWA 

Third  —  The  amount  of  capital  stock  incorporated. 

Fourth  —  The  amount  of  capital  stock  actually  paid  in,  and  the 
times  and  conditions  on  which  the  remainder  is  to  be  paid. 

Fifth  —  The  time  of  the  commencement  and  termination  of  the 
association. 

Sixth  —  the  officers  of  the  company,  and  the  time  of  holding 
elections. 

Sec.  11.  A  like  publication  and  recording  shall  be  made  upon 
renewal,  or  any  essential  alteration  of  the  articles  of  incorporation. 

Sec.  12.  The  corporation  shall  not  be  permitted  to  continue  for 
more  than  twenty  years  at  once,  but  may  be  renewed  for  a  like  time 
by  the  unanimous  consent  of  the  corporators. 

Sec.  13.  The  corporation  cannot  be  voluntarily  dissolved  previous 
to  the  period  first  fixed  upon,  without  giving  the  same  previous 
newspaper  publication  of  its  dissolution,  as  is  required  by  section 
eight  in  its  creation. 

Sec.  14.  Intentional  fraud  in  the  transaction  of  the  affairs  of  the 
company  shall  subject  those  guilty  thereof  to  fine  and  imprisonment, 
or  both,  at  the  discretion  of  the  court.  Any  person  who  shall  receive 
injury  from  such  fraud,  may  also  recover  damages  therefor  in  civil 
suit  against  such  corporation. 

Sec.  15.  The  payment  of  dividends  which  shall  leave  insufficient 
funds  to  meet  the  liabilities  of  the  company,  shall  be  deemed  fraud. 

Sec.  16.  A  failure  to  comply  with  the  foregoing  requisitions,  or  a 
substantial  departure  from  the  articles  of  association,  shall  render 
the  individual  property  of  the  members  of  the  company  liable  for 
the  corporate  debts. 

Sec.  17.  Either  such  a  departure,  or  the  practice  of  fraud  by  the 
company,  shall  cause  a  forfeiture  of  all  their  privileges  under  this 
act,  and  the  courts  may  proceed  to  wind  up  their  business,  as  in 
cases  of  special  corporations  that  have  violated  their  charters. 

Sec.  18.  Legal  process  may  be  served  upon  any  officer  of  the 
company,  and,  if  there  be  no  officers,  then  upon  any  member  thereof. 
This  shall  be  deemed  sufficient  service  upon  the  company. 

Sec.  19.  Whenever  an  execution  shall  be  issued  against  the  com- 
pany, and,  after  reasonable  inquiries,  no  corporate  property  can  be 
found  sufficient  to  satisfy  the  same,  it  shall  be  lawful  to  serve  a 


GENERAL  CORPORATIONS  113 

notice  upon  the  acting  manager  of  the  business  of  the  company,  or, 
if  none  such  can  be  found,  then  upon  any  member  thereof,  requiring 
them  to  appear  before  the  District  Court  of  the  county  where  the 
judgment  was  obtained,  and  show  cause  why  the  individual  prop- 
erty of  the  members  of  the  company  should  not  be  made  liable,  and, 
if  no  sufficient  cause  be  shown  then  the  court  shall  order  the  execu- 
tion to  be  levied  upon  such  property. 

Sec.  20.  Property  seized  by  virtue  of  such  execution  shall  only 
be  released  from  the  effects  of  the  law  by  either : 

First  —  Pointing  out  sufficient  company  property  whereon  to 
levy;  in  which  case  the  costs  thus  far  made  shall  be  added  to  the 
amount  to  be  collected  from  the  company  by  the  execution  —  or. 

Second  —  By  making  and  filing  in  the  clerk's  office  an  affidavit 
that  the  funds  of  the  company  are  exhausted,  and  by  informing  the 
officer  who  made  the  levy  of  the  same.  In  this  case  the  officer  shall 
forthwith  make  return  of  that  fact  to  the  court  from  whence  the 
execution  was  issued.  He  shall  thereupon  suspend  all  further  pro- 
ceedings under  the  execution,  and  the  property  levied  upon  shall  be 
treated  as  though  held  by  virtue  of  a  writ  of  attachment  until  the 
further  order  of  the  court. 

Sec.  21.  The  plaintiff  may  direct  a  release  of  the  property  thus 
taken  in  execution,  or  he  may  appear  before  the  District  Court  at 
the  return  day  of  the  execution,  or  as  early  as  practicable  after- 
wards, and,  in  answ^er  to  a  rule  to  show  cause  why  the  property 
should  not  be  released,  may  allege  such  matters  as  will  render  the 
private  property  of  the  members  of  the  company  liable.  Issue  shall 
thereupon  be  joined,  to  be  tried  by  a  jury. 

Sec.  22.  Upon  such  trial  it  shall  be  necessary  for  the  company  to 
exhibit  their  books  and  papers,  if  required,  and  explain  by  those,  or 
by  some  other  means,  the  fairness  and  regularity  of  their  business 
transactions.  The  judgment  of  the  court  shall  be  in  accordance 
with  the  finding  of  the  jury. 

Sec.  23.  Whenever  the  private  property  of  one  member  of  the 
company  is  thus  held,  he  shall  have  a  claim  for  indemnity  against 
the  company. 

Sec.  24.  Any  of  the  members  may  sue  the  company  at  law  for 
a  private  demand  against  the  same. 


114  ECONOI\nC  LEGISLATION  IN  IOWA 

See.  25.  All  corporations  whose  charters  shall  expire  by  their 
own  limitations,  or  shall  be  annulled  by  forfeiture  or  otherwise, 
shall  nevertheless  be  continued  bodies  corporate  for  the  term  of 

years  after  the  time  when  they  would  have  been  so  dissolved, 

for  the  purpose  of  prosecuting  and  defending  suits  by  or  against 
them,  and  of  enabling  them  gradually  to  settle  and  close  their  con- 
cerns, to  dispose  of  and  convey  their  property,  and  to  divide  their 
capital  stock,  but  not  for  the  purpose  of  continuing  the  business  for 
which  such  corporation  or  corporations  have  been,  or  may  be,  in- 
corporated. 

Sec.  26.  The  private  property  of  each  stockholder  shall  be  liable 
for  all  the  debts  of  the  corporation,  to  the  amount  of  stock  owned  by 
said  stockliolder  at  the  time  when  such  debts  were  contracted,  and 
also  to  the  amount  of  stock  owned  by  said  stockholder  at  any  subse- 
quent time. 1^8 

The  Code  of  1851  made  very  few  important  changes  in 
the  corporation  act  of  1847.  The  subject-matter  of  the  law 
was  rearranged,  many  slight  modifications  were  made,  and 
several  entirely  new  sections  were  added.  Among  the 
changes  that  should  be  noted  are  the  provisions  for  wider 
publicity  and  for  the  publication  of  certain  information  rel- 
ative to  the  by-laws,  officers,  capital  stock  subscribed,  capital 
stock  actually  paid  in,  and  the  amount  of  indebtedness  of 
the  company.  Of  the  nine  new  sections,  one  provided  that 
the  non-use  of  a  franchise  for  two  years  at  any  one  time 
would  forfeit  the  franchise;  another  authorized  the  estab- 
lishment of  a  sinking  fund  which  could  be  loaned  on  securi- 
ties until  needed  for  the  purpose  of  meeting  the  contingency 
for  which  it  was  established ;  and  a  third  section  provided 
that  when  a  franchise  had  been  levied  upon  under  an  execu- 
tion and  sold,  the  corporators  should  not  have  the  power  to 
dissolve  the  corporation  and  thus  destroy  the  franchise. 
Other  new  sections  made  it  possible  for  a  single  individual 
to  incorporate  under  certain  conditions,  prohibited  corpora- 
tors from  setting  up  the  want  of  a  legal  organization  as  a 


GENERAL  CORPORATIONS  115 

defense  to  an  action  against  them  as  a  corporation,  and 
authorized  corporations  organized  under  the  law  as  it  ap- 
peared before  1851  to  change  their  charters  so  as  to  entitle 
them  to  all  the  advantages  and  subject  them  to  all  the  lia- 
bilities provided  for  by  the  new  changes. ^^^ 

The  present  Constitution  of  the  State  of  Iowa  was 
adopted  in  1857.  The  subject  of  corporations  received 
much  consideration  in  the  constitutional  convention  and  the 
Constitution  as  adopted  contains  an  article  of  twelve  sec- 
tions on  corporations.  Eight  of  these  sections  relate  to 
banking  and  will  not  be  considered  in  this  connection.  The 
other  four  sections,  which  relate  to  general  corporations, 
are  as  follows : 

Section  1.  No  corporation  shall  be  created  by  special  laws;  but 
the  General  Assembly  shall  provide,  by  general  laws,  for  the  organ- 
ization of  all  corporations  hereafter  to  be  created,  except  as  herein- 
after provided. 

Sec.  2.  The  property  of  all  corporations  for  pecuniary  profit, 
shall  be  subject  to  taxation,  the  same  as  that  of  individuals. 

Sec.  3.  The  State  shall  not  become  a  stockholder  in  any  corpora- 
tion, nor  shall  it  assume  or  pay  the  debt  or  liability  of  any  corpora- 
tion, unless  incurred  in  time  of  war  for  the  benefit  of  the  state. 

Sec.  12.  Subject  to  the  provisions  of  this  article,  the  General 
Assembly  shall  have  power  to  amend  or  repeal  all  laws  for  the 
organization  or  creation  of  corporations,  or  granting  of  special  or 
exclusive  privileges  or  immunities,  by  a  vote  of  two-thirds  of  each 
branch  of  the  General  Assembly ;  and  no  exclusive  privileges,  except 
as  in  this  article  provided,  shall  ever  be  granted.-<^*^ 

There  was  little  change  made  in  the  corporation  laws  for 
several  years  following  the  adoption  of  the  Constitution  of 
1857.  The  section  of  the  Code  of  1851  which  provided  that 
the  individual  property  of  all  stockholders  should  be  liable 
for  the  debts  of  the  corporation  in  case  the  laws  relative  to 
organization  and  publicity  were  not  observed  was  made  in- 
applicable to  railroad  companies  in  1858.    Two  years  later 


116  ECONOMIC  LEGISLATION  IN  IOWA 

the  law  was  amended  to  permit  agricultural  and  horticul- 
tural societies  to  incorporate  for  any  length  of  time,  under 
certain  conditions.  By  the  provisions  of  a  law  of  1870  all 
corporations  for  profit  were  required  to  file  articles  of  in- 
corporation with  the  Secretary  of  State.-^^ 

In  the  Code  of  1873  the  corporation  law  was  again  re- 
arranged. A  general  insurance  law  had  been  enacted,  so 
that  provisions  relating  to  insurance  were  omitted  from  the 
general  corporation  act.  One  new  section  of  a  regulatory 
character  appears.  It  reserves  to  the  General  Assembly 
the  right  to  alter  or  set  aside  by  law  every  franchise  used  by 
any  corporation.  The  power  to  regulate  and  impose  condi- 
tions was  reserved  by  the  same  section.^*^^ 

Only  slight  changes  were  made  in  the  corporation  laws 
for  several  years  after  the  adoption  of  the  Code  of  1873. 
Acts  were  passed  for  the  purpose  of  legalizing  the  proceed- 
ings of  corporations  that  had  failed  to  comply  with  the  law 
in  regard  to  filing  articles  and  publishing  notices  of  their 
incorporation.  Articles  of  incorporation  were  required  to 
be  adopted  and  recorded  before  any  business  was  transacted 
and  a  change  was  made  in  the  law  to  relieve  corporations 
engaged  in  manufacture  from  double  taxation.  Section  1061 
of  the  Code  of  1873,  which  required  articles  of  incorporation 
to  specify  the  highest  amount  of  indebtedness  or  liability  to 
which  a  corporation  was  to  be  subjected,  was  somewhat 
altered.  The  change  made  the  provisions  inapplicable  to 
bonds  issued  by  a  railway  company  for  construction  pur- 
poses up  to  a  limited  amount.^^^ 

The  Twenty-first  General  Assembly  enacted  the  first  law 
for  the  regulation  of  foreign  corporations  doing  business  in 
the  State.  This  act  required  any  such  foreign  corporation 
to  file  a  certified  copy  of  its  articles  of  incorporation  with 
the  Secretary  of  State.  Such  articles  had  to  be  accom- 
panied by  a  resolution  of  the  board  of  directors  or  stock- 
holders authorizing  the  filing  of  the  articles  and  author- 


GENERAL  CORPORATIONS  117 

izing  the  service  of  process  to  be  made  upon  any  of  its 
officers  or  agents  engaged  in  transacting  business  in  this 
State.  The  application  must  contain  a  statement  that  the 
corporation  recognized  that  its  permit  would  be  subject  to 
the  provisions  of  the  act.  The  law  did  prevent  any  foreign 
corporation  from  dealing  in  notes,  bonds,  mortgages  or 
other  securities,  or  from  enforcing  the  collection  of  securi- 
ties in  the  Federal  courts  as  was  possible  before  the  new 
law  was  passed.^*^^ 

The  act  expressly  exempted  from  its  operation  mercan- 
tile and  manufacturing  companies  organized  in  other  States, 
and  corporations  exercising  the  right  of  eminent  domain 
were  specially  included.  Moreover,  it  provided  for  the  can- 
cellation of  the  permit  to  do  business  of  any  corporation 
that  removed  any  cause  of  action  from  the  State  courts  to 
the  Federal  courts  sitting  in  the  State,  for  the  reason  that 
such  corporation  was  a  non-resident,  or  because  of  local 
prejudice  against  such  corporation.  The  latter  clause  was 
declared  unconstitutional  on  the  ground  that  it  made  the 
agreement  not  to  remove  cases  to  the  Federal  court  a  con- 
dition for  obtaining  a  permit  to  do  business. ^^^  Penalties 
were  to  be  imposed  on  corporations  and  their  agents  for 
doing  business  in  the  State  without  complying  with  the  law. 

In  1888  the  section  of  the  law  defining  the  conditions 
"under  which  firms  might  incorporate  was  enlarged  to  in- 
clude the  ownership,  operation,  and  maintenance  of  canals, 
railways,  bridges,  or  other  works  of  internal  improvement. 
The  purpose  of  organization  was  enlarged  to  include  the 
purchase,  ownership,  operation,  and  maintenance  of  any 
railroad  sold  or  transferred  under  power  of  sale  or  fore- 
closure of  a  mortgage  deed  or  trust. -^*^  The  Code  of  1897 
reduced  this  whole  section  to  the  following  simple  state- 
ment: ''any  number  of  persons  may  become  incorporated 
for  the  transaction  of  any  lawful  business,  but  such  incor- 
poration confers  no  powers  or  privileges  not  possessed  by 


118  ECONOAnC  LEGISLATION  IN  IOWA 

natural  persons  ".^'^'^  The  method  of  amending  articles  of 
incorporation  was  also  changed  by  the  Twenty-second  Gen- 
eral Assembly  in  such  a  manner  that  articles  might  be 
changed  at  any  annual  or  special  meeting  of  the  stockhold- 
ers. To  be  valid  such  changes  were  required  to  be  recorded 
and  published  in  the  same  manner  as  the  original  articles.^*^^ 

The  Twenty-sixth  General  Assembly  changed  the  condi- 
tions under  which  the  transfer  of  shares  of  stock  in  cor- 
porations was  valid  so  as  to  permit  such  shares  of  stock  to 
be  held  as  collateral  security  by  other  corporations,  but  the 
books  of  both  corporations  must  show  the  actual  condition 
of  such  holdings.  At  this  same  session  of  the  General  As- 
sembly "An  Act  regulating  fees  for  the  incorporation  and 
the  increase  in  capital  stock  of  companies  and  corporations 
in  the  state  of  Iowa"  was  passed.  An  incorporation  fee  of 
twenty-five  dollars,  with  an  additional  fee  of  one  dollar  per 
thousand  upon  the  authorized  capital  stock  in  excess  of  ten 
thousand  dollars,  was  required  of  all  incorporations  except 
building  and  loan  associations,  companies  organized  for  the 
manufacture  of  butter,  cheese,  or  other  dairy  products, 
workmen's  cooperative  associations,  and  farmers'  mutual 
insurance  companies.  The  fee  was  limited  in  all  cases  to 
three  hundred  and  fifty  dollars;  and  all  companies  organ- 
ized before  the  law  was  enacted  were  required  to  pay  a  fee 
of  one  dollar  per  thousand  dollars  of  increase  in  capital 
stock,  in  case  any  increase  should  be  made.  The  organiza- 
tion of  any  new  corporation  was  held  to  be  incomplete  until 
the  incorporation  fees  were  paid.^^^ 

Numerous  slight  changes  and  modifications  in  the  cor- 
poration laws  and  some  important  additions  appear  in  the 
Code  of  1897.  Every  corporation  transacting  business  in 
the  State  must  include  in  its  articles  of  incorporation  a 
designation  of  its  principal  place  of  business  in  the  State, 
which  place  must  be  in  charge  of  an  agent  of  the  company. 
The  stock  and  transfer  books  of  the  company  must  be  kept, 


GENERAL  CORPORATIONS  119 

and  its  meetings  held,  at  the  place  designated.  Moreover,  a 
list  of  officers  and  directors,  with  any  change  in  the  location 
of  its  place  of  business,  must  be  filed  annually  with  the 
Secretary  of  State. ^^*^  Relative  to  the  diversion  of  cor- 
porate funds,  the  following  provision  was  added : 

If  the  directors  or  other  officers  or  agents  of  any  corporation  shall 
declare  and  pay  any  dividend  when  such  corporation  is  known  by 
them  to  be  insolvent,  or  any  dividend  the  payment  of  which  would 
render  it  insolvent,  or  which  would  diminish  the  amount  of  its 
capital  stock,  all  directors,  officers  or  agents  knowingly  consenting 
thereto  shall  be  jointly  and  severally  liable  for  all  the  debts  of  such 
corporation  then  existing,  but  dividends  made  in  good  faith  before 
knowledge  of  the  occurring  of  losses  shall  not  come  within  the  pro- 
visions of  this  section.211 

In  the  matter  of  issuing  stock  an  endorsement  was  re- 
quired on  the  face  of  the  certificate  or  share  showing  the 
amount  or  portion  of  the  par  value  paid  for  the  same,  to- 
gether with  a  statement  indicating  whether  the  payment 
was  made  in  money  or  in  other  property.  A  further  addi- 
tion relating  to  the  liability  of  the  private  property  of 
stockholders  for  corporate  debts  provided  that  in  suits  by 
creditors  to  recover  unpaid  installments  upon  shares  of 
stock,  the  stockholder  should  be  liable  for  the  difference 
between  the  amount  paid  by  him  to  the  corporation  for  the 
stock  and  the  face  value  of  the  same.^^^ 

Foreign  corporations  doing  business  in  the  State  were 
required  to  pay  the  same  incorporation  fees  and  fees  for  the 
increase  of  capital  stock  as  were  required  of  companies 
organized  in  the  State.  Moreover,  such  corporations  were 
declared  to  be  subject  to  all  the  liabilities,  restrictions,  and 
duties  that  are  imposed  or  may  be  imposed  upon  corpora- 
tions organized  under  the  laws  of  Iowa.  Finally,  the  Code 
of  1897  provided  that  courts  of  equity  should  have  full 
power,  on  cause  shown,  to  dissolve  or  close  up  the  business 
of  a  corporation  and  to  appoint  a  receiver  for  such  corpora- 


120  ECONOMIC  LEGISLATION  IN  IOWA 

tion;  and  any  foreign  corporation,  the  stock  of  which  was 
owned  in  whole  or  in  part  by  others,  was  declared  to  have 
the  same  rights  and  privileges  with  regard  to  the  purchase 
and  ownership  of  real  estate  in  the  State  as  non-resident 
aliens. ^^^ 

Many  laws  relating  to  corporations  for  pecuniary  profit 
have  been  placed  upon  the  statute  books  of  Iowa  since  the 
adoption  of  the  Code  of  1897.  In  1898  the  maximum  incor- 
poration fee  was  changed  from  three  hundred  and  fifty  dol- 
lars to  two  thousand,  and  later  this  maximum  was  removed. 
The  Twenty-eighth  General  Assembly  provided  that  cor- 
porations renewing  their  charters  should  be  subject  to  the 
regular  incorporation  fees.  By  a  statute  passed  in  1904 
every  executor,  administrator,  guardian,  or  trustee  was 
given  the  right  to  vote  the  stock  in  his  hands  at  all  cor- 
porate meetings  the  same  as  a  stockholder ;  and  the  owner 
of  stock  levied  upon  by  attachment  or  other  proceedings 
was  declared  to  have  the  right  to  vote  the  same  until  his 
title  to  it  has  been  divested  by  an  execution  sale.^^^ 

During  the  last  ten  years  there  has  been  a  tendency  to 
demand  a  more  stringent  regulation  of  the  manner  in  which 
corporations  shall  be  allowed  to  conduct  their  business,  and 
this  demand  has  led  to  legislation  by  the  General  Assembly. 
In  1907  a  law  provided  that  where  articles  of  incorporation 
are  presented  to  the  Secretary  of  State  for  the  purpose  of 
being  filed,  he  shall  not  file  them  until  he  has  determined 
whether  they  are  in  proper  form  to  meet  the  requirements 
of  the  law,  whether  their  object  is  a  lawful  one  and  not 
against  public  policy,  and  whether  their  plan  for  doing 
business  is  honest  and  lawful.  If  the  Secretary  of  State 
refuses  to  file  such  articles  the  corporators  may  submit  the 
rejected  articles  to  the  Executive  Council,  which  has  the 
final  decision  in  the  matter.  If  the  articles  presented  ap- 
pear to  be  illegal  the  Secretary  of  State  submits  them  to 
the  Attorney  General  whose  opinion  as  to  legality  is  final.^^^ 


GENERAL  CORPORATIONS  121 

Regulation  of  the  issue  of  capital  stock  by  corporations 
was  also  prescribed  in  1907.  The  issue  of  stock  at  less  than 
par  was  prohibited.  When  it  is  proposed  to  pay  for  stock 
in  any  thing  other  than  money  the  corporation  must  apply 
to  the  Executive  Council  for  leave  to  receive  such  payments ; 
and  the  application  for  such  permission  must  state  the 
amount  of  capital  stock  proposed  to  be  issued  for  property 
payment  and  specifically  define  and  describe  the  property  to 
be  received  in  payment  for  such  stock.  The  Executive 
Council  then  investigates  the  proposal  and  fixes  the  value 
at  which  the  corporation  may  receive  the  property  in  pay- 
ment for  capital  stock.  The  issue  of  stock  for  such  prop- 
erty at  a  greater  value  than  that  fixed  and  determined  upon 
by  the  Executive  Council  is  prohibited. 

Every  corporation  issuing  capital  stock  is  required  under 
oath  to  file  within  ten  days  with  the  Secretary  of  State,  a 
certificate  stating  the  date  of  issue,  the  amount  issued,  the 
sum  received  in  money,  or  the  property  received  if  the  pay- 
ment is  not  made  in  money.  Stock  issued  in  violation  of 
this  provision  may  be  cancelled  and  corporations  violating 
the  provisions  of  the  act  may  be  dissolved  upon  application 
of  the  Attorney  General,  in  behalf  of  the  State,  to  any  court 
of  competent  jurisdiction.^^^ 

The  same  General  Assembly  imposed  a  severe  penalty 
upon  any  director,  officer,  or  agent  of  any  corporation  who 
should  knowingly  concur  in  making  any  false  statement 
concerning  the  pecuniary  condition  of  a  corporation.  More- 
over, voluntary  political  contributions  by  corporations  were 
prohibited  and  the  soliciting  of  such  contributions  by  party 
representatives  or  employees  was  declared  unlawful.-^'^ 

The  laws  regulating  the  adoption,  recording,  and  ap- 
proval of  articles  of  incorporation,  those  relative  to  fees, 
place  of  business,  and  duration  of  charters,  together  ^vith 
the  laws  pertaining  to  the  cancellation  of  stock,  changes  in 
articles  of  incorporation,  and  the  filing  of  articles  of  incor- 


122  ECONOMIC  LEGISLATION  IN  IOWA 

poration  of  foreign  companies  were  collected  and  redrawn 
in  Chapter  104  of  the  laws  of  the  Thirty-third  General  As- 
sembly. Chapter  105  of  the  laws  of  the  same  session  re- 
quires an  annual  report  and  the  payment  of  an  annual 
license  fee  by  every  corporation  doing  business  within  the 
State.  The  purpose  of  this  law  is  to  enable  the  Secretary  of 
State  to  keep  fully  informed  in  regard  to  the  number  and 
kinds  of  corporations  doing  business  within  the  State. 

The  required  report  must  be  made  upon  a  blank  prepared 
by  the  Secretary  of  State  and  contain  the  following  infor- 
mation: (1)  the  name  and  post  office  address  of  the  corpora- 
tion; (2)  the  amount  of  capital  stock  authorized;  (3)  the 
amount  of  capital  stock  actually  issued  and  outstanding; 
(4)  the  par  value  of  such  stock,  designating  whether  pre- 
ferred or  common,  and  the  amount  of  each  kind;  and  (5) 
the  names  and  post  office  addresses  of  its  officers  and  direc- 
tors, and  whether  any  change  of  place  of  business  has  been 
made  during  the  year  previous  to  making  the  report.  A 
nominal  license  fee  of  one  dollar  is  required ;  and  provision 
is  made  for  the  forfeiture  of  the  right  to  transact  business 
in  the  State  upon  persistent  refusal  of  any  concern  to  make 
the  required  report  and  pay  the  license  fee.  The  provisions 
of  this  act  do  not  apply  to  banks  or  insurance  companies  or 
to  corporations  which  do  not  exist  for  the  purpose  of  pecu- 
niary profit.  A  list  of  all  the  corporations  which  comply 
with  the  law,  together  with  their  addresses,  is  sent  by  the 
Secretary  of  State  to  each  of  the  several  county  recorders 
in  the  State  who  file  the  same  in  their  offices. ^^^ 

Additional  regulations  were  imposed  upon  foreign  cor- 
porations transacting  business  in  this  State  by  both  the 
Thirty-fourth  and  Thirty-fifth  General  Assemblies.  Such 
corporations  were  required  to  comply  with  all  the  laws  gov- 
erning the  issuance  of  capital  stock  by  domestic  corpora- 
tions. They  must  make  the  same  reports  as  were  required 
of  domestic  corporations,  and  obtain  a  special  permit  to 


GENERAL  CORPORATIONS  123 

transact  business  within  the  State.  Courts  of  equity  were 
given  the  power  to  dissolve  and  terminate  any  such  permit 
held  by  any  corporation  violating  the  provisions  of  the  act. 
These  regulations  were  made  to  apply  specially  to  public 
utility  corporations  and  holding  companies. -^'^ 

The  Thirty-sixth  General  Assembly  passed  an  act  which 
provided  that  a  public  service  corporation  might  incur  an 
indebtedness  not  to  exceed  twice  the  amount  of  its  paid-up 
capital  stock.  Special  provision  was  made  for  the  organ- 
ization of  associations  for  the  purpose  of  conducting  busi- 
ness on  the  cooperative  plan.  The  following  types  of  busi- 
ness firms  were  authorized  to  incorporate  under  this  law: 
agricultural,  dairy,  mercantile,  mining,  manufacturing,  and 
mechanical  concerns.  The  fees  for  incorporating  under 
this  act  were  lower  than  for  ordinary  corporations.  Com- 
panies organized  under  the  provisions  of  the  cooperative 
plan  are  required  to  have  a  managing  board  of  directors  of 
not  less  than  five  members.  The  ownership  of  stock  is 
ordinarily  limited  to  one  thousand  dollars  to  any  one  stock- 
holder. Regulations  are  imposed  on  the  conduct  of  the 
business.  Shareholders  are  not  liable  for  the  debts  of  the 
corporation  and  the  indebtedness  of  such  a  corporation  is 
limited  to  an  amount  not  greater  than  two-thirds  of  the 
capital  stock.-^*' 

LAWS  FOE  THE  PROTECTION  OF  INVESTORS 

Ajnong  the  various  laws  of  a  regulatory  character  en- 
acted for  the  purpose  of  controlling  the  actions  of  corpora- 
tions transacting  business  in  the  State  there  are  two  or 
three  which  should  be  noted  because  they  were  passed  for 
the  express  purpose  of  protecting  investors  in  corporate 
securities.  The  first  measure  of  this  type  was  enacted  by 
the  Thirtieth  General  Assembly  and  is  entitled  ''An  Act  to 
provide  for  the  regulation  of  persons,  firms,  companies, 
partnerships,    associations    or    corporations,    other    than 


124  ECONOMIC  LEGISLATION  IN  IOWA 

building  and  loan  associations  and  insurance  companies 
and  associations,  which  issue,  place,  sell  or  otherwise  en- 
gage in  the  business  of  handling  certificates,  memberships, 
shares,  contracts,  debentures,  bonds,  stocks,  tontine  con- 
tracts, or  other  investment  securities  or  agreements  of  any 
kind  or  character,  on  the  partial  payment  or  installment 
plan,  prescribing  the  terms  and  conditions  upon  which  such 
persons,  firms,  companies,  partnerships,  associations  or  cor- 
porations shall  be  permitted  to  do  business  within  this 
state." 

The  first  section  of  this  law  is  devoted  to  the  definition  of 
the  terms ;  and  the  second  section  prescribes  the  manner  of 
obtaining  a  certificate.  No  association  of  this  character 
can  lawfully  issue  any  stock  until  it  has  a  certificate  from 
the  State  Auditor  authorizing  it  to  engage  in  such  business. 
In  order  to  obtain  a  certificate  the  association  must  file  a 
statement,  under  oath,  with  the  Auditor  of  State,  ' '  showing 
the  name  and  location  of  such  association,  the  name  and 
post  office  address  of  its  officers  the  date  of  organization, 
and  if  incorporated  and  a  copy  of  its  articles  of  incorpora- 
tion, also,  a  copy  of  its  by-laws  or  rules  by  which  it  is  to  be 
governed,  the  form  of  its  certificates,  stocks  or  contracts,  all 
printed  matter  issued  by  it,  together  with  a  detailed  state- 
ment of  its  financial  condition  and  such  other  information 
concerning  its  affairs  or  plan  of  business  as  the  auditor  of 
state  may  require." 

The  Auditor  presents  such  information  to  the  Executive 
Council  for  consideration.  If  it  appears  to  the  Council  that 
the  business  is  not  in  violation  of  law  or  of  public  policy, 
and  is  safe  and  entitled  to  public  confidence,  and  if  the 
Council  approves  of  the  form  of  the  certificate  of  stock  or 
contract,  the  Auditor  is  then  directed  to  issue  a  certificate  of 
authority  authorizing  the  association  to  transact  business 
for  a  period  of  one  year.  Such  associations  are  required  to 
make  an  annual  report  to  the  Auditor  of  State  showing  the 


GENERAL  CORPORATIONS  125 

conditions  at  the  close  of  the  year,  and  such  report  must  be 
in  the  form  prescribed  by  the  Auditor.  If  the  statement  of 
the  association  indicates  that  it  is  doing  a  safe  business  and 
is  solvent  its  certificate  may  be  renewed  for  a  year.  If  it 
appears,  however,  that  the  business  is  unsafe  or  insolvent 
the  Auditor  may  revoke  its  certificate  of  authority.  A  re- 
ceiver is  then  appointed  and  the  affairs  of  the  association 
are  closed  up. 

Moreover,  before  any  association  of  this  character  is 
allowed  to  transact  any  business  in  the  State  it  must  de- 
posit with  the  Auditor  of  State  an  approved  bond  or  other 
approved  securities  to  the  amount  of  $25,000,  guaranteeing 
the  faithful  performance  of  all  contracts  made  by  it.  After 
the  first  year  the  association  must  keep  on  deposit  w^ith  the 
Auditor  securities  equal  to  the  amount  of  liability,  and  at 
no  time  less  than  $25,000.  A  fee  of  twenty-five  dollars  is 
required  upon  the  granting  of  a  certificate  to  do  business  in 
the  State,  and  an  annual  renewal  fee  of  ten  dollars  must  be 
paid  at  the  time  of  filing  the  annual  statement. 

Such  associations  are  subject  to  the  same  examination  as 
is  provided  for  insurance  companies,  and  are  subject  to  the 
same  fees  and  costs  therefor,  and  to  the  same  restrictions 
and  regulations  in  so  far  as  they  are  applicable.  They  may 
be  required  to  produce  all  books  and  papers  asked  for  by 
the  examiner  and  ' '  if  upon  examination,  it  shall  appear  that 
such  association  does  not  conduct  its  business  in  accordance 
with  law,  or  if  it  permits  forfeiture  of  payments  by  persons 
holding  its  stock,  after  three  years  from  the  issuance  of 
said  stock  or  provides  for  the  payment  of  its  expenses  other 
than  from  earnings,  or  that  any  profits,  advantage  or  com- 
pensation of  any  form  or  description  is  given  to  any  mem- 
ber or  investor  over  any  other  member  or  investor  of  the 
same  class,  or  if  beneficiaries  are  selected  or  determined  or 
advantages  given  one  over  another  by  any  form  of  chance, 
lottery  or  hazard,  or  if  certificates  of  stock  are  by  their 


126  ECONOMIC  LEGISLATION  IN  IOWA 

terms  or  by  any  other  provision  to  be  redeemed  in  nu- 
merical order  or  by  any  arbitrary  order  or  precedence,  with- 
out reference  to  the  amount  previously  paid  thereon  by  the 
holder  thereof,  or  that  the  affairs  are  in  an  unsound  condi- 
tion, or  if  such  association  refuses  such  examination  to  be 
made,  the  auditor  of  state  may  revoke  its  certificate  of 
authority  to  do  business  in  this  state".  Severe  penalties 
are  provided  for  attempting  to  transact  business  without  a 
certificate  of  authority. ^^^ 

BLUE  SKY  LEGISLATION 

Many  of  the  State  legislatures  have  within  the  past  few 
years  enacted  so-called  "blue  sky  laws"  in  an  endeavor  to 
put  an  end  to  the  swindling  operations  of  promoters.  It 
appears  that  much  difficulty  has  been  encountered  in  secur- 
ing legislation  which  would  prevent  the  sale  of  fraudulent 
securities  and  at  the  same  time  not  place  obstacles  in  the 
way  of  the  legitimate  dealer.  The  Thirty-fifth  General 
Assembly  enacted  a  "blue  sky  law"  in  1913  which  aimed  to 
prevent  the  sale  of  fraudulent  securities  through  publicity 
and  supervision.  The  act  provided  supervision  and  regu- 
lation for  investment  companies  and  required  all  persons, 
companies,  or  corporations  offering  stock,  bonds,  and  se- 
curities to  procure  a  license  from  the  Secretary  of  State 
who  was  vested  with  discretionary  power.-^-  About  one 
year  after  its  enactment  the  statute  was  declared  unconsti- 
tutional by  the  District  Court  of  the  United  States  because 
it  imposed  a  direct  burden  on  interstate  commerce.  The 
difficulties  in  the  way  of  drawing  a  blue  sky  law  are  indi- 
cated in  the  opinion  of  the  court  which  held  the  act  to  be 
invalid.  The  court  said  that  ' '  the  act  prohibits  a  citizen  of 
a  sister  state  owning  and  having  stocks,  bonds,  certificates, 
or  securities,  although  the  same  are  listed  on  the  exchanges 
of  the  country  and  have  a  well-established  actual  and  salable 
value,  from  either  bringing  or  sending  them  into  the  state 


GENERAL  CORPORATIONS  127 

for  sale  or  negotiating  for  their  sale  to  any  person  in  the 
state  unless  he  complies  with  the  requirements  of  the  act 
by  obtaining  from  the  Secretary  of  State  and  paying  for  a 
certificate  as  an  investment  company  or  a  stock-broker  and 
subjecting  himself  to  its  penalties,  held  ....  not  with- 
in the  police  powers  of  the  state  as  an  inspection  law,  but 
unconstitutional  and  invalid  as  imposing  a  direct  burden  on 
interstate  commerce,  and  as  imposing  burdens  upon  and 
denying  privileges  to  citizens  of  other  states  which  are  not 
imposed  upon,  and  which  are  not  granted  to,  citizens  of 
Iowa.  "223 

In  1915  the  Thirty-sixth  General  Assembly  repealed  the 
law  of  1913  and  enacted  a  substitute  which  endeavors  to 
avoid  the  constitutional  objections  to  the  former  law.  The 
new  statute,  without  the  repealing  clause,  is  entitled  *'An 
Act  ....  to  prevent  fraud  in  the  sale  and  disposition 
of  stocks,  bonds  and  other  securities  within  this  state,  by 
requiring  an  inspection  of  such  stocks,  bonds  and  other 
securities,  and  an  inspection  of  the  business  of  such  per- 
sons, firms,  associations,  companies  or  corporations,  in- 
cluding their  agents  and  representatives,  and  the  payment 
of  an  inspection  fee." 

The  new  act  expressly  excepts  many  classes  of  securities 
from  its  operation.  Among  those  excepted  are  government 
and  municipal  securities,  securities  of  banks,  and  nearly  all 
other  ordinary  and  regular  securities.  One  section  of  the 
paragraph  enumerating  the  securities  to  be  excepted  gives 
some  indication  of  the  class  of  securities  which  the  law 
seeks  to  prevent  from  being  marketed  in  Iowa.  It  states 
that  the  provisions  of  the  act  are  not  to  apply  to  "the  stock 
of  any  corporation  organized  under  the  laws  of  this  or  any 
other  state  or  territory  of  the  United  States,  or  of  the  fed- 
eral government,  provided  that  under  the  laws  of  such  state 
or  territory  or  federal  government  no  capital  stock  of  a 
corporation  can  be  legally  issued  unless  the  par  value  of 


128  ECONOMIC  LEGISLATION  IN  IOWA 

said  stock  is  paid  for  in  full  in  either  cash  or  property  at 
its  actual  value  before  the  issuance  of  such  stock  and  where 
all  property  and  any  other  thing  given  in  exchange  for  such 
stock  other  than  cash  must  be  valued  at  not  more  than  its 
actual  cash  value  by  some  duly  appointed  officer  or  com- 
mission of  such  state,  territory  or  federal  government 
under  the  laws  of  which  such  corporation  is  organized  and 
where  such  stock  has  been  issued  in  accordance  with  the 
provisions  of  such  laws." 

In  order  to  obtain  a  certificate  of  authority  to  transact 
business  in  the  State  an  association  must  file  with  the  Secre- 
tary of  State  certain  papers  and  documents.  Under  this 
requirement  the  company  must  file  a  copy  of  its  constitution 
and  by-laws  or  articles  of  co-partnership  or  association,  a 
financial  statement  indicating  the  amount  of  properties  and 
liabilities,  a  detailed  statement  of  the  plan  for  doing  busi- 
ness, a  copy  of  the  securities  which  it  proposes  to  sell, 
samples  of  all  advertising  literature  to  be  used,  a  statement 
of  the  location  of  the  business  office,  with  the  names  and 
addresses  of  its  officers  and  directors,  and,  if  incorporated 
in  any  other  State,  a  certified  copy  of  its  articles  of  incor- 
poration. Other  information  may  be  required  at  the  dis- 
cretion of  the  Secretary  of  State. 

An  annual  report  is  required  of  every  such  association 
authorized  to  transact  business  in  the  State.  A  simple 
process  is  provided  for  serving  legal  papers :  they  are  sub- 
ject to  examination  by  the  Secretary  of  State,  who  may  in- 
spect the  books  and  papers.  The  plan  of  business  may  not 
be  changed  without  the  consent  of  the  Secretary  of  State; 
and  violation  of  the  law  or  the  appearance  of  fraud  is  cause 
for  the  cancellation  of  the  permit  to  transact  business  in 
the  State. 

Companies  are  not  allowed  to  advertise  in  a  manner  that 
would  indicate  that  the  Secretary  of  State  had  approved  or 
that  he  recommended  the  securities  offered  for  sale.    Sell- 


OENERAL  CORPORATIONS  129 

ing  agents  are  required  to  file  their  appointments  with  the 
Secretary  of  State  and  obtain  a  permit  annually,  which  may 
be  cancelled  for  cause.  Stock-brokers  are  required  to  give 
bonds,  to  obtain  permits,  to  pay  license  fees,  and  to  file 
every  month  a  list  of  securities  offered  for  sale  and  a  de- 
scription of  those  sold.  Severe  penalties  are  provided  for 
the  violation  of  the  several  parts  of  the  law. 

An  attempt  is  made  to  save  the  law  in  case  the  validity  of 
any  one  part  is  questioned.  Thus  the  last  section  reads: 
"Should  any  section  of  this  act  or  any  part  thereof  be  held 
by  any  court  of  competent  jurisdiction  to  be  unconstitu- 
tional, such  decision  shall  affect  the  specific  provision  only 
which  it  is  held  offends  against  the  constitution  and  said 
unconstitutional  part  shall  not  be  held  to  be  an  inducement 

to  the  passage  of  any  other  section  or  provision  of  this 
act.  "224 

ANTI-COMBINATION  LAWS 

Since  the  right  to  regulate  interstate  commerce  is  re- 
served to  Congress  the  separate  States  of  the  Union  have 
often  been  unable  to  regulate  the  conduct  of  corporations, 
even  within  their  own  borders.  Especially  has  this  been 
true  in  the  matter  of  regulating  such  organizations  as  com- 
mon carriers. 

In  Iowa  freight  pooling  between  competing  railroads  was 
made  unlawful  by  a  provision  of  the  Code  of  1873.  This 
provision  was  rewritten  in  a  law  passed  at  the  regular  ses-- 
sion  of  the  Twenty-second  General  Assembly.  Another  act 
passed  at  the  same  session  prohibited  any  corporation 
doing  business  in  this  State  from  creating  or  entering  into 
''any  pool,  trust,  agreement,  combination  or  confederation 
with  any  other  corporation,  partnership  or  individual ' '  for 
the  purpose  of  fixing  the  price  of  any  commodity.  Com- 
iDinations  for  the  limitation  of  the  supply  of  any  commodity 
were  also  prohibited.  Penalties  were  named  and  provision 
was  made  to  compel  witnesses  to  testify.--^ 

9 


130  ECONOMIC  LEGISLATION  IN  IOWA 

A  comprehensive  anti-trust  law  was  enacted  in  1890,  ac- 
cording to  which  any  combination  or  association  of  indi- 
viduals for  the  purpose  of  regulating  the  price  or  limiting 
the  output  of  any  ''article,  commodity  or  merchandise  to  be 
manufactured,  mined,  produced  or  sold  in  this  state"  was 
declared  unlawful.  The  formation  of  trusts  and  the  issu- 
ance of  trustee  certificates  was  forbidden ;  severe  penalties 
were  named ;  and  contracts  in  violation  of  the  provisions  of 
the  act  were  declared  void.  Moreover,  violation  of  the  act 
served  to  forfeit  the  charter  of  the  corporation.-^^ 

In  1896  the  Twenty-sixth  General  Assembly  passed  an 
act  to  prevent  combinations  between  fire  insurance  com- 
panies, for  the  purpose  of  fixing  rates  to  be  charged  for  in- 
surance. The  penalties  for  unlawful  combination  were 
increased  in  1907,  and  combinations  for  the  purpose  of 
fixing  the  price  or  preventing  free  competition  in  the  buying 
and  selling  of  grain  were  prohibited.  The  anti-combination 
law  was  again  rewritten  in  1909;  and  four  years  later  the 
law  was  improved  in  the  matter  of  obtaining  information 
from  interested  witnesses.^^'^ 

THE  TAXATION  OF  CORPORATIONS 

Special  methods  have  been  developed  in  a  rather  irregu- 
lar manner  for  the  taxation  of  certain  classes  of  corpora- 
tions, such  as  steam  and  interurban  railroads,  insurance 
companies,  banks  and  trust  companies,  express,  telegraph, 
telephone,  freight  car  line,  and  equipment  companies.  For 
general  corporations  no  special  methods  of  taxation  have 
been  devised. 

During  the  Territorial  period  all  corporations,  unless  they 
escaped  taxation  altogether,  were  taxed  under  the  general 
provisions  of  the  act  making  all  property,  real  and  per- 
sonal, subject  to  assessment.  In  1847  a  law  provided  that 
every  person  should  return,  for  assessment,  the  value  of  the 
interest  in  the  capital  stock,  undivided  profits,  or  means  of 


GENERAL  CORPORATIONS  131 

every  company,  incorporated  or  unincorporated,  owned  by 
him.  The  Code  of  1851  required  the  principal  accounting 
officer  of  every  corporation  to  report  and  list  the  property 
of  the  corporation  with  the  assessor.  The  State  Constitu- 
tion adopted  in  1857  expressly  provides  that  the  property 
of  all  corporations  for  pecuniary  profit  shall  be  subject  to 
taxation  the  same  as  the  property  of  individuals.  Since  that 
time  special  methods  of  taxation  have  been  applied  to  cer- 
tain classes  of  corporations,  but  for  those  not  included  in 
the  special  classes  little  change  has  been  made  in  the  method 
of  taxation.22^ 

The  law  for  the  taxation  of  corporations  was  rewritten  in 
the  Code  of  1897.  It  provides  that  domestic  and  foreign 
corporations,  not  otherwise  provided  for  by  special  systems 
of  taxation,  shall  pay  locally  the  general  property  tax  for 
State  and  local  purposes.  The  assessment  of  the  personal 
property  of  a  domestic  corporation,  not  expressly  provided 
for  by  statute,  is  based  on  the  value  of  the  capital  stock  of 
the  corporation  —  the  actual  value  and  not  the  market  price 
—  less  the  exempted  property  and  the  assessed  value  of  real 
estate.2^^ 

Corporations  are  required  to  furnish  to  the  local  asses- 
sors verified  annual  statements  of  all  necessary  facts.  The 
assessors  then  have  the  power  to  fix  arbitrarily  the  value  of 
the  capital  stock  for  taxation  purposes.  The  tax  is  assessed 
to  the  corporations  at  their  principal  places  of  business  and 
is  paid  by  them.  Payment  of  the  tax  gives  the  corporations 
a  lien  upon  the  stock  and  unpaid  dividends  for  reimburse- 
ment from  the  stockholders. 

Eeal  estate  owned  by  corporations  is  taxed  locally  in  the 
same  manner  as  that  owned  by  individuals.  Moneys  and 
credits,  with  certain  exceptions,  are  taxable  to  the  owners 
locally  for  State  and  local  purposes  at  the  uniform  rate  of 
five  mills  on  each  dollar  of  actual  value. 

Domestic  and  foreign  manufacturing  and  mercantile  cor- 


132  ECONOMIC  LEGISLATION  IN  IOWA 

porations  pay  the  general  property  tax  locally  for  both 
State  and  local  purposes.  The  raw  material  of  such  con- 
cerns is  assessed  at  the  average  taxable  value  of  such  stock 
on  hand  during  the  preceding  year.  Machinery  is  regarded 
as  real  estate  and  taxed  as  such.^^^  The  method  of  taxing 
the  class  of  corporations  here  considered  is  not  clear-cut. 
The  various  portions  of  the  law  should  be  collected  and  the 
law  redrawn  as  a  unit. 

EECAPITULATION 

An  examination  of  the  corporation  laws  of  Iowa  reveals 
the  fact  that  Iowa  has  been  conservative  in  its  corporation 
legislation.  The  law  as  it  appears  to-day  is  based  largely 
on  the  act  of  1847.  Special  laws  are  provided  for  incor- 
porating banks,  building  and  loan  associations,  fidelity  com- 
panies, insurance,  railroad,  telegraph,  telephone,  water,  and 
water  power  companies. 

The  common  law  powers  of  a  corporation  as  enumerated 
in  the  law  may  be  summarized  as  follows:  (1)  to  have  per- 
petual succession;  (2)  to  sue  and  be  sued  by  its  corporate 
name;  (3)  to  have  a  common  seal  which  it  may  alter  at 
pleasure;  (4)  to  render  the  interests  of  the  stockholders 
transferable ;  (5)  to  exempt  the  private  property  of  its  mem- 
bers from  liability  for  corporate  debts,  except  as  otherwise 
declared;  (6)  to  make  contracts,  acquire  and  transfer  prop- 
erty, possessing  the  same  power  in  such  respects  as  indi- 
viduals; and  (7)  to  establish  by-laws  and  make  all  rules  and 
regulations  necessary  for  the  management  of  its  affairs. 

Notice  of  incorporation  must  be  published  and  the  content 
of  such  notice  is  prescribed,  but  the  law  does  not  specific- 
ally prescribe  the  content  of  the  articles  of  incorporation. 
Any  number  of  persons  may  incorporate  under  the  Iowa 
law.  There  are  no  residential  requirements  for  incorpora- 
tors or  for  directors.  Any  number  of  persons  may  act  as 
directors,  who  are  penally  liable  for  the  unlawful  diversion 
of  the  corporate  funds. 


GENERAL  CORPORATIONS  133 

Articles  of  incorporation  must  be  recorded  in  the  county 
where  the  principal  place  of  business  is  located  and  in  the 
office  of  the  Secretary  of  State.  Corporate  indebtedness  is 
limited  to  two-thirds  of  the  amount  of  the  capital  stock, 
except  when  bonded  and  secured  by  mortgages. 

An  organization  tax  of  twenty-five  dollars  is  charged  and 
an  additional  fee  of  one  dollar  per  thousand  dollars  of  cap- 
ital stock  in  excess  of  ten  thousand  dollars.  These  fees  are 
smaller  for  cooperative  enterprises.  Small  fees  are  re- 
quired for  filing  and  recording  the  articles  of  incorporation. 
For  extending  the  corporate  existence  the  regular  organiza- 
tion fees  are  charged.  Moreover,  an  annual  license  fee  of 
one  dollar  is  required  with  the  annual  report  to  the  Secre- 
tary of  State. 

Corporations  may  not  transact  any  business  until  the  arti- 
cles of  incorporation  are  filed  with  the  Secretary  of  State 
and  approved  by  him.  Every  corporation  transacting  busi- 
ness within  the  State  is  required  to  maintain  an  office  in  the 
State.  Every  stockholder  is  entitled  to  have  a  certificate 
for  the  shares  held  by  him.  The  issue  of  preferred  stock  is 
not  expressly  authorized.  Stock  may  be  issued  for  either 
money  or  property,  but  the  issue  of  stock  for  property  is 
under  the  supervision  of  the  Secretary  of  State.  Transfer 
books  are  required  to  be  kept  at  the  principal  office  within 
the  State ;  and  such  books  are  open  to  the  inspection  of  the 
public. 

Every  corporation  transacting  business  within  the  State 
is  required  to  report  annually  to  the  Secretary  of  State. 
Charters  may  be  forfeited  for  intentional  fraud  on  the  part 
of  the  corporation  or  for  failure  to  comply  substantially 
with  the  articles  of  incorporation  and  with  the  laws  of  the 
State.  Corporate  existence  may  be  extended  for  an  addi- 
tional period  of  twenty  years  if  desired.  Articles  may  be 
amended  by  complying  with  the  provisions  of  the  law.  Cor- 
porations may  also  be  dissolved  before  the  period  fixed  in 


134  ECONOMIC  LEGISLATION  IN  IOWA 

the  articles  of  incorporation  under  certain  conditions ;  and 
courts  of  equity  have  power  to  dissolve  corporations  or 
close  up  their  business. 

Every  foreign  corporation  must  file  with  the  Secretary 
of  State  a  certified  copy  of  its  articles  of  corporation.  The 
articles  must  be  accompanied  by  a  resolution  of  the  board 
of  directors  or  stockholders  authorizing  the  filing  of  the 
articles.  The  resolution  must  also  appoint  an  agent  upon 
whom  service  of  process  may  be  had  within  the  State.  For- 
eign corporations  are  required  to  pay  the  same  fees  and  to 
make  the  same  reports  as  are  required  of  corporations 
organized  within  the  State. 

Elaborate  laws  have  been  placed  upon  the  statute  books 
for  the  purpose  of  protecting  investors  in  corporation  se- 
curities and  for  the  prevention  of  pools,  trusts,  and  con- 
spiracies. 

In  the  matter  of  the  taxation  of  corporations  no  special 
system  has  been  developed.  The  corporations  dealt  with  in 
this  chapter  are  taxed  under  the  general  property  tax,  mod- 
ified in  such  a  manner  as  to  be  applicable. 

The  corporation  law  of  Iowa  is  neither  extreme  nor  hos- 
tile, and  contains  no  features  not  found  in  the  laws  of 
neighboring  States.  The  law  has  been  amended  many 
times  and  at  present  contains  most  of  the  essentials  of  a 
complete  and  satisfactory  law ;  but  it  needs  to  be  rewritten. 
All  the  parts  should  be  brought  together  and  constructed 
into  a  comprehensive  statute  on  corporations. 


VII 

INSURANCE  LEGISLATION 

THE  EAELY  PEEIOD 

Although  insurance  on  a  large  scale  is  of  recent  develop- 
ment, by  the  time  the  Iowa  country  was  first  settled  the 
business  had  made  a  substantial  growth  in  the  United 
States. ^^^  Indeed,  before  Iowa  had  become  a  separate  Ter- 
ritory one  mutual  fire  insurance  company  had  been  char- 
tered by  a  special  act  of  the  Legislative  Assembly  of  the 
original  Territory  of  Wisconsin.  This  company  was  called 
the  Iowa  Mutual  Fire  Insurance  Company  and  was  char- 
tered in  January,  1838.  The  incorporating  act  simply 
enumerated  the  corporators  and  declared  that  the  new  com- 
pany should  have  the  same  powers  as  those  of  the  Milwau- 
kee and  Eacine  mutual  fire  insurance  companies,  which  had 
been  chartered  less  than  one  month  earlier.  These  com- 
panies, it  appears,  were  simple  mutual  fire  insurance 
companies  with  ordinary  corporate  powers.  The  manner 
of  the  administration  of  their  business  was  set  forth  in 
detail  in  the  charter  statute.^^^ 

After  the  Iowa  country  had  become  a  separate  Territory 
insurance  companies  were  chartered  by  special  acts  of  the 
legislature  in  the  same  manner  that  other  businesses  were 
incorporated.  By  special  act  the  First  Legislative  Assem- 
bly of  the  Territory  of  Iowa  incorporated  one  insurance 
company,  the  object  of  which  was  ''to  afford  the  members 
thereof  the  means  of  mutually  insuring  each  other  against 
loss  by  fire".  The  company  was  given  the  usual  corporate 
powers.  The  organization  of  the  company  was  defined  in 
detail,  and  every  person  insured  in  the  company  was  de- 

135 


136  ECONOMIC  LEGISLATION  IN  IOWA 

clared  to  be  a  member  of  the  company  and  entitled  to  vote 
for  its  officers.  Every  insured  person  was  required  to  de- 
posit Ms  promissory  note  with  the  treasurer  of  the  com- 
pany for  such  a  sum  of  money  as  the  directors  might 
specify,  and  five  per  cent  of  the  amount  of  the  note  had  to 
be  paid  in  money.  At  the  expiration  of  the  term  for  which 
the  insurance  was  to  run  the  note,  less  all  losses  and  ex- 
penses incurred  during  the  term,  was  returned.  Every 
member  was  bound  to  pay  his  proportional  share  of  all 
losses  to  the  amount  of  his  premium  note  on  deposit  with 
the  treasurer.  The  note,  moreover,  gave  the  company  a 
lien  on  the  insured  property.  Methods  of  settlement  were 
outlined  in  the  statute.  Double  insurance  was  prohibited; 
and  no  insurance  could  be  issued  until  thirty  thousand  dol- 
lars had  been  subscribed.  The  last  section  of  the  act  re- 
served to  the  Territory  or  State  the  right  to  alter  or  repeal 
the  law.  2-^^ 

In  1840  the  Bloomington  Insurance  Company  was  incor- 
porated by  a  special  act.  This  was  a  stock  company  with 
an  authorized  capital  of  fifty  thousand  dollars,  divided  into 
shares  of  twenty-five  dollars  each.  The  affairs  of  the  com- 
pany were  to  be  managed  by  a  board  of  nine  directors 
elected  by  the  shareholders.  Section  eight  of  the  act  de- 
clared : 

That  the  corporation  hereby  created  shall  have  power  and  lawful 
authority  to  insure  all  kinds  of  property  against  loss  or  damage  by 
fire  or  other  casualty,  to  make  all  kinds  of  insurances  against  loss 
on  goods  and  merchandise  in  the  course  of  transportation,  whether 
on  land  or  water,  to  make  all  kinds  of  insurance  on  life  or  lives,  to 
cause  themselves  to  be  insured  against  any  loss  or  risk  which  they 
may  incur  in  the  course  of  their  business,  and  generally  to  do  and 
perform  all  other  matters  and  things  connected  with  and  proper  to 
promote  those  objects. 

The  stock  was  transferable  and  the  charter  was  to  endure 
for  twenty  years.    The  right  to  alter  or  repeal  the  act  was 


INSURANCE  LEGISLATION  137 

expressly  reserved.  The  company  evidently  did  not  organ- 
ize upon  receiving  the  charter,  since  in  1842  a  law  was 
passed  which  declared  the  incorporating  act  of  1840  to  be 
in  full  force  and  appointed  certain  men  to  open  books  for 
stock  subscriptions.  An  additional  section  to  the  former 
act  stated  that  if  the  company  became  insolvent  the  stock- 
holders would  be  held  individually  responsible  for  the  debts 
of  the  company.-^^ 

Special  acts  incorporating  the  Dubuque  Insurance  Com- 
pany and  the  Farmington  Insurance  Company  were  ap- 
proved on  the  same  day  —  February  17,  1842.  These  were 
both  stock  companies  with  powers  and  privileges  similar  to 
those  granted  to  the  Bloomington  Insurance  Company. 
They  were  authorized  to  lend  surplus  money  under  the 
express  provision  that  nothing  but  gold  and  silver  or  notes 
of  specie-paying  banks  should  be  loaned.  The  other  provi- 
sions are  not  new.  The  stock  was  transferable  and  the 
stock-holders  were  individually  liable  for  the  debts  of  the 
company.  The  charters  were  granted  for  a  period  of  thirty 
years,  but  the  right  to  amend  or  repeal  them  was  reserved 
to  the  legislature.  One  other  mutual  fire  insurance  com- 
pany was  incorporated  by  special  act  during  the  Territorial 
period,  but  no  new  features  were  included  in  the  incor- 
porating law."^^ 

The  first  Constitution  of  Iowa,  adopted  in  1846,  con- 
tained a  provision  to  the  effect  that  corporations  should 
not,  thereafter,  be  created  in  the  State  by  special  laws ;  but 
the  General  Assembly  was  instructed  to  provide  for  their 
organization  by  general  laws.  The  same  article  further 
provided  that  ''stock-holders  shall  be  subject  to  such  lia- 
bilities and  restrictions  as  shall  be  provided  by  law"  and 
that  the  State  should  never  become  a  stockholder  in  any  cor- 
poration.23*^  A  general  incorporation  act  was  passed  at  the 
first  session  of  the  General  Assembly;  but  no  special  in- 
surance law  was  enacted  until  1857,  when  a  general  law 


138  ECONOMIC  LEGISLATION  IN  IOWA 

prescribing  regulations  for  fire  insurance  companies  was 
passed. 

The  insurance  law  of  1857  was  entitled  *'An  Act  in  rela- 
tion to  insurance  companies."  It  was  regulatory  in  char- 
acter and  not  applicable  to  the  business  of  life  insurance. 
Every  insurance  company  organized  under  the  laws  of  the 
State  was  required  to  file  a  certified  statement  with  the 
Auditor  of  State  and  with  the  clerk  of  the  district  court  of 
the  county  in  which  the  company  was  located.  This  state- 
ment was  required  to  show  in  detail  the  financial  condition 
of  the  company.  Semi-annual  statements  must  also  be  filed 
by  every  company,  and  such  statements  were  to  contain  the 
name  and  location  of  the  company,  the  amount  of  capital 
stock,  the  amount  of  capital  stock  paid  up,  the  detailed  as- 
sets of  the  company,  the  amount  of  liabilities  due  or  not  due 
to  creditors  of  the  company,  losses  adjusted  and  due,  losses 
adjusted  and  not  due,  losses  unadjusted,  losses  in  suspense, 
all  other  claims  against  the  company,  and  the  greatest 
amount  insured  by  any  one  risk.  Penalties  were  prescribed 
for  failure  to  make  reports  when  due. 

Under  the  law  companies  were  also  prohibited  from  hold- 
ing real  estate.  An  agent  of  any  foreign  insurance  company 
transacting  business  in  this  State  was  required  to  obtain  a 
certificate  of  authority  from  the  State  Auditor;  and  in  order 
to  procure  such  a  certificate  foreign  companies  were  re- 
quired to  file  under  oath  with  the  Auditor  a  financial  state- 
ment similar  to  the  one  required  of  domestic  companies. 
Moreover,  every  such  company  was  obliged  to  file  a  copy  of 
its  articles  of  incorporation,  together  with  a  certified  in- 
strument authorizing  its  agents  to  acknowledge  service  of 
process  for  the  company.  A  foreign  company  in  order  to 
transact  business  in  this  State  was  required  to  have  an 
actual  capital  of  at  least  one  hundred  thousand  dollars, 
invested  in  certain  prescribed  securities.  Upon  compliance 
with  all  the  provisions  of  the  act  a  foreign  insurance  com- 


INSURANCE  LEGISLATION  139 

pany  could  transact  business  in  this  State.  Its  agents  were 
given  certificates  of  authority  by  the  Auditor,  and  such 
certificates  had  to  be  renewed  every  year.  A  maximum  fine 
of  one  thousand  dollars  was  provided  for  the  violation  of 
any  of  the  provisions  of  the  act.^^"^ 

Some  amendments  to  the  act  of  1857  were  made  by  the 
Seventh  General  Assembly.  Any  foreign  company  having 
a  guarantee  fund  deposited  in  another  State  was  required 
to  build  up  such  a  fund  in  Iowa.  The  same  act  enabled 
agents  of  foreign  mutual  insurance  companies  to  procure 
certificates  of  authority  to  transact  business  in  Iowa,  and 
such  companies  were  required  to  be  possessed  of  secured 
capital  to  the  amount  of  at  least  one  hundred  thousand 
dollars.  In  1862  the  provisions  of  the  law  of  1857  were 
extended  so  as  to  be  applicable  to  foreign  life  insurance 
companies.  This  extension  did  not,  however,  apply  to  for- 
eign mutual  life  insurance  companies,  since  these  were  per- 
mitted to  transact  business  in  the  State  by  simply  filing 
articles  of  incorporation  and  showing  that  they  possessed 
at  least  one  hundred  thousand  dollars  in  unencumbered 
assets.2^^ 

INSUEANCE  LEGISLATION  OTHEE  THAN  LIFE 

The  first  comprehensive,  general  insurance  legislation  in 
the  State  of  Iowa  was  enacted  by  the  Twelfth  General  As- 
sembly, which  placed  two  laws  upon  the  statute  books.  One 
of  these  laws  was  for  the  regulation  of  life  insurance  com- 
panies ;  and  the  other  dealt  with  insurance  companies  other 
than  life.  These  laws  still  constitute  the  basis  of  insurance 
legislation  in  this  State.  Many  amendments  and  changes 
have  been  made,  but  no  comprehensive  revision  has  taken 
place.  From  that  time  to  the  present  day  the  distinction 
between  life  insurance  and  insurance  other  than  life  has 
been  observed  in  insurance  legislation. 

The  first  of  these  two  laws  related  to  insurance  com- 


140  ECONOMIC  LEGISLATION  IN  IOWA 

panies  other  than  life,  and  defined  the  procedure  in  the 
formation  and  organization  of  such  companies.  The  meth- 
od of  organization  followed  that  provided  for  the  formation 
of  general  business  corporations.  Any  number  of  persons 
were  authorized  to  associate  for  the  purpose  of  forming  an 
insurance  company.  They  were  required  to  publish  a  no- 
tice of  their  intention,  specify  the  name  assumed,  the  object 
of  the  corporation,  the  amount  of  capital,  and  the  location 
of  the  principal  office.  This  information  had  also  to  be  for- 
warded to  the  State  Auditor,  who  submitted  it  to  the  Attor- 
ney General  for  examination.  If  the  information  was  in 
accord  with  the  law,  and  the  name  of  the  company  not  too 
similar  to  one  already  appropriated  by  another  company, 
the  certificate  was  approved  and  recorded  in  the  same  man- 
ner as  articles  of  incorporation  were  approved.  Before  a 
company  could  transact  any  insurance  business  it  was  re- 
quired to  comply  with  certain  other  conditions. 

The  law  authorized  both  joint  stock  companies  and  mu- 
tual associations.  Joint  stock  companies  were  required  to 
have  a  capital  of  not  less  than  fifty  thousand  dollars  nor 
more  than  one  million  dollars.  One-fourth  of  the  capital, 
in  no  case  less  than  twenty-five  thousand  dollars,  had  to  be 
paid  up  in  cash;  and  shares  of  stock  must  be  divided  into 
one  hundred  dollars  each.  Mutual  companies  were  required 
to  have  agreements  with  at  least  two  hundred  applicants 
for  insurance  amounting  to  not  less  than  twenty-five  thou- 
sand dollars,  of  which  five  thousand  dollars  had  to  be  paid 
up  and  the  remainder  secured  by  notes  certified  to  be  worth 
their  face  value. 

Books  for  subscription  could  be  opened  upon  compliance 
with  all  the  provisions  relative  to  organization.  Directors 
were  required  to  be  selected  by  the  stockholders  from  among 
their  own  number  —  each  share  being  entitled  to  one  vote ; 
and  the  number  of  directors  could  not  be  less  than  five  nor 
greater  than  twenty-one.     The  investment  of  the  capital, 


INSURANCE  LEGISLATION  141 

accumulated  funds,  and  surplus  was  limited  to  certain 
classes  of  securities.  After  examination  by  the  Auditor  of 
State  and  the  filing  of  a  certificate  to  the  effect  that  all  the 
provisions  of  the  law  had  been  complied  with,  the  Auditor 
issued  permission  for  the  company  to  begin  the  transaction 
of  business. 

The  kinds  of  insurance  authorized  comprised  the  follow- 
ing: fire,  marine,  and  casualty;  health  and  accident;  fidelity 
insurance  and  the  safe-keeping  of  personal  property;  live 
stock  and  bottomry.  Each  company  was  required  to  con- 
fine its  business  to  the  insurance  of  one  of  the  classes  enu- 
merated ;  and  any  one  risk  was  limited  in  amount  to  ten  per 
cent  of  the  paid-up  capital  unless  the  same  was  reinsured. 
The  manner  of  holding  elections  of  officers  was  prescribed ; 
and  the  companies  appointed  their  own  secretaries  and 
agents.  They  made  their  own  by-laws  and  regulations, 
which  were  required  to  be  open  to  the  inspection  of  stock- 
holders and  persons  invested  by  law  with  the  right  of  in- 
spection. 

Shares  of  stock  were  declared  to  be  transferable ;  and  the 
capital  stock  could  be  increased  up  to  the  maximum.  The 
making  of  dividends  was  restricted  to  surplus  profit,  and  in 
estimating  such  profit  a  reserve  of  forty  per  cent  of  the 
amount  received  as  premiums  on  unexpired  risks  and  poli- 
cies was  required  to  be  kept  out.  Violation  of  this  latter 
provision  subjected  a  company  to  a  forfeiture  of  its  charter. 
Insurance  corporations  were  also  limited  in  their  power  to 
buy  and  hold  real  estate. 

The  method  of  redeeming  premium  notes  held  by  mutual 
companies  was  defined  in  detail,  as  was  the  method  of  mak- 
ing settlement  of  losses.  Every  mutual  company  was  re- 
quired to  incorporate  the  word  ''mutual"  in  the  title  of  the 
company,  and  stock  companies  were  required  to  indicate 
the  fact  that  they  were  stock  companies  on  the  face  of  the 
policies  issued.    Moreover,  the  law  required  every  company 


142  ECONOMIC  LEGISLATION  IN  IOWA 

organized  under  the  laws  of  this  State,  or  doing  business  in 
the  State,  to  make  an  annual  report  to  the  State  Auditor. 
Such  report  was  to  be  made  in  January  and  to  show  the 
condition  of  the  company  on  the  last  day  of  the  preceding 
December. 

The  requirements  for  the  report  were  the  same  as  at  pres- 
ent, and  included  the  following  items  and  facts :  the  amount 
of  capital  stock  of  the  company ;  the  names  of  the  officers ; 
the  name  of  the  company  and  where  located ;  the  amount  of 
paid-up  capital  stock;  the  property  or  assets  of  the  com- 
pany specified  separately  and  in  detail ;  the  liabilities  of  the 
company  specified  in  detail;  the  income  of  the  company 
during  the  previous  year ;  the  expenditures  during  the  pre- 
ceding year;  the  largest  amount  insured  in  any  one  risk; 
the  amount  of  risks  written  during  the  year  then  ending; 
the  amount  of  risks  in  force  having  less  than  one  year  to 
run;  the  amount  of  risks  in  force  having  more  than  one 
year  to  run ;  and  the  dividends,  if  any,  declared  on  premiums 
received  for  risks  not  terminated.  The  Auditor  of  State 
was  authorized  to  require  any  other  information  which  he 
might  deem  necessary.  Accident  companies  were  required 
to  give  many  additional  items. ^^^ 

Every  foreign  insurance  company  was  prohibited  from 
transacting  insurance  business  in  Iowa,  unless  possessed  of 
one  hundred  thousand  dollars  in  actual  paid-up  capital  ex- 
clusive of  other  assets  or  deposits.  Before  a  foreign  com- 
pany could  transact  business  in  the  State  it  was  required  to 
file  with  the  Auditor  of  State  a  certified,  signed  instrument 
authorizing  its  agents  to  acknowledge  service  of  process  for 
the  company.  It  must  also  file  a  certified  copy  of  its  articles 
of  incorporation  and  a  statement  which  was  to  include  the 
same  information  as  contained  in  the  financial  statement 
required  of  domestic  companies.  An  agent  of  a  foreign 
company  was  not  allowed  to  transact  business  in  the  State 
until  he  had  procured  a  certificate  of  authority  from  the 


INSURANCE  LEGISLATION  143 

Auditor  of  State  to  the  effect  that  the  company  had  com- 
plied with  the  provisions  of  the  law.  Annual  reports  were 
also  required  of  foreign  companies ;  and  penalties  were  pro- 
vided for  violation  of  any  of  the  provisions  of  the  act.  In- 
surance companies  were  required  to  conform  to  the  new  law 
within  a  limited  period. 

The  provisions  of  the  law  were  declared  to  apply  to  all 
foreign  companies  whether  partnerships,  associations,  or 
individuals,  incorporated  or  unincorporated.  The  Auditor 
was  given  power  to  examine  into  the  affairs  of  insurance 
companies.  He  was  given  access  to  books  and  could  exam- 
ine under  oath.  In  case  an  examination  showed  the  impair- 
ment of  the  capital  of  a  company  the  business  could  be 
closed  out.  Requisition  upon  stockholders  could  be  made  by 
a  company  to  replace  the  impairment  to  its  capital  stock. 
In  case  the  deficiency  was  not  made  up  in  the  time  allotted 
by  the  Auditor  the  directors  of  the  company  were  held  to  be 
individually  liable  for  all  losses  accruing  upon  new  risks 
taken  after  the  expiration  of  the  period  set  by  the  Auditor 
for  making  up  the  deficiency  in  the  capital.  If  the  Audi- 
tor's examination  indicated  that  the  business  of  a  company 
was  in  an  unsound  condition  he  was  authorized  to  revoke  its 
certificate  of  authority  to  do  business.  Mutual  companies 
were  under  the  same  regulations. 

Home  companies  were  required  to  pay  the  following  fees : 
for  filing  the  first  examination  and  application  and  the  issue 
of  a  certificate  of  license,  ten  dollars ;  for  filing  each  annual 
statement,  two  dollars;  for  each  certificate  of  authority, 
fifty  cents ;  for  every  copy  of  paper  filed,  ten  cents  per  folio 
and  fifty  cents  for  certifying  the  same.  Foreign  companies 
were  required  to  pay  an  amount  equal  to  the  amount  re- 
quired by  the  laws  of  their  respective  States  to  be  paid  by 
Iowa  companies  doing  business  in  such  States.  Companies 
were  also  required  to  pay  the  cost  of  all  examinations  made 
or  caused  to  be  made  by  the  Auditor. 


144  ECONOMIC  LEGISLATION  IN  IOWA 

Every  company  transacting  business  in  this  State  was 
required  to  publish  annually  in  two  newspapers  of  general 
circulation  a  certificate  from  the  Auditor  that  such  company 
had  complied  with  the  laws  of  the  State  relating  to  insur- 
ance. Such  notice  also  contained  a  sworn  statement  of  the 
actual  amount  of  paid-up  capital,  the  aggregate  amount  of 
assets  and  liabilities  at  the  date  of  certificate,  together  with 
the  aggregate  income  and  expenditures  of  the  company  for 
the  year  preceding  the  issuance  of  the  certificate. 

The  Auditor  was  authorized  to  prepare  the  forms  of 
statements  to  be  made  and  to  make  changes  in  such  forms. 
A  company  was  required  to  be  either  a  stock  company  or  a 
mutual  company,  and  could  issue  only  one  kind  of  business. 
Ordinary  mutual  self-insurance  companies  were  allowed  to 
do  business,  but  they  were  restricted  to  the  insuring  of  the 
property  owned  by  their  own  members. -^*^ 

Since  the  enactment  of  the  general  fire  insurance  law  in- 
1868  legislation  on  this  subject  has  been  amendatory  and 
fragmentary  in  character.  One  series  of  acts  had  to  do 
with  the  kinds  of  insurance  permissible  and  the  limitation 
of  risks.  New  kinds  of  insurance  were  authorized  by  these 
laws,  and  at  present  nine  classes  of  insurance  are  permis- 
sible. These  classes  include  a  very  wide  range  of  risks. 
Class  one  authorizes  the  insurance  of  almost  every  kind  of 
destructible  property  against  loss  or  damage  by  fire  or 
other  casualty  or  in  transportation,  and  against  loss  of 
rents.  Class  two  authorizes  fidelity  insurance.  The  third 
class  includes  the  safe-keeping  of  books,  papers,  money, 
stocks,  bonds,  and  all  kinds  of  personal  property.  Class 
four  is  live  stock  insurance.  Class  five  embraces  health  and 
accident  insurance,  and  the  insurance  of  employers  against 
loss  in  consequence  of  accidents  to  employees.  The  sixth 
class  includes  loss  or  injury  from  the  explosion  of  steam 
boilers.  Burglary  insurance  constitutes  class  seven.  The 
eighth  class  is  credit  insurance.     Class  nine  includes  a 


INSURANCE  LEGISLATION  145 

variety  of  risks,  such  as  all  kinds  of  evidences  of  debt, 
transportation,  and  automobiles.  No  one  company  is  per- 
mitted to  issue  policies  of  insurance  for  more  than  one  of 
the  nine  classes  of  risks  enumerated,  except  by  meeting 
certain  special  requirements  as  to  capital.-^^ 

An  amendatory  act  passed  in  1872  required  foreign  in- 
surance companies,  transacting  business  in  this  State,  to 
have  an  actual  paid-up  capital  of  two  hundred  thousand 
dollars.  Before  that  time  the  requirement  had  been  only 
one-half  that  amount.  Moreover,  the  act  provided  an  elab- 
orate system  of  fees,  in  which  foreign  companies  were 
discriminated  against  and  a  policy  of  retaliation  was 
instituted.^^^ 

Again,  laws  of  a  regulatory  character  applicable  only  to 
certain  types  of  companies  have  been  enacted.  In  1876 
foreign  mutual  companies  having  cash  assets  amounting  to 
two  hundred  thousand  dollars  above  liabilities  were  author- 
ized to  transact  business  in  the  State.  Two  years  later  a 
provision  required  insurance  companies  to  cancel  policies 
upon  an  equitable  basis  when  requested  to  do  so  by  the 
insured.  The  publication  of  any  false  statement  relative  to 
the  financial  standing  of  a  company  was  prohibited  during 
the  same  year.  The  Eighteenth  General  Assembly  made 
further  provision  for  the  protection  of  policy-holders  and 
the  cancellation  of  policies.  In  1894  the  Auditor  of  State 
was  required  to  refuse  to  authorize  those  companies  to  do 
business  in  the  State  which  stipulated  in  their  policies 
that  the  assured  must  bear  a  certain  percentage  of  the  loss. 
Combination  between  companies  for  the  purpose  of  fixing 
rates  was  prohibited  in  1896;  and  the  same  General  As- 
sembly passed  a  law  expressly  prohibiting  any  company 
which  had  not  complied  with  all  the  provisions  of  the  law 
from  transacting  business  in  the  State.^^^ 

No  further  amendments  of  importance  were  made  until 
1907.    But  it  should  be  noted  in  this  connection  that  begin- 

10 


146  ECONOMIC  LEGISLATION  IN  IOWA 

ning  with  the  Thirtieth  General  Assembly  there  has  been  an 
increasing  body  of  legislation  enacted  which  is  applicable  to 
all  kinds  of  insurance  companies.  This  group  of  laws  will 
be  discussed  below. 

The  Thirty-second  General  Assembly  passed  **An  Act 
providing  for  a  uniform  policy  to  be  used  by  all  fire  insur- 
ance companies  doing  business  in  the  state  of  Iowa."  By 
the  provisions  of  this  act  it  was  made  unlawful  for  any 
insurance  company  to  issue  any  policy  of  fire  insurance 
upon  any  property  in  the  State  other  or  different  from  the 
standard  form  of  policy  provided.  Certain  additions, 
riders,  and  clauses  were,  however,  permitted  to  appear  on 
the  policy.  For  instance,  it  was  made  lawful  for  a  company 
to  set  forth  its  name  and  certain  descriptive  data  relative 
to  the  company.  It  could  also  describe  the  property  insured 
and  the  conditions  in  cases  of  extra  hazard.  There  were 
also  additions  permissible  in  case  of  double  insurance;  and 
the  provisions  required  by  law  to  be  printed  on  policies 
were  to  be  so  specified.  Each  policy  issued  had  to  bear  the 
words:  ''Iowa  Standard  Fire  Insurance  Policy". 

The  standard  form  of  the  policy  is  drawn  with  the  pur- 
pose of  protecting  both  the  party  insured  and  the  company, 
by  requiring  all  conditions  under  which  the  risk  is  taken  by 
the  company  to  appear  in  full.  The  smallest  size  of  type 
allowable  is  prescribed  and  the  manner  of  arrangement  of 
the  conditions  is  designated.  The  law  aims  to  secure  uni- 
formity and  to  prevent  misunderstanding  by  prescribing  a 
standard  form  of  contract  to  be  used  by  all  companies  doing 
business  in  the  State.  Violation  of  any  of  the  provisions  of 
the  act  is  a  misdemeanor,  and  any  company  found  guilty  of 
such  violation  is  disqualified  from  doing  business  in  the 
State  until  the  fines  for  violation  are  paid.  Companies 
writing  policies  in  violation  of  the  act,  however,  are  bound 
by  any  contract  made  in  violation  of  the  law.^^-* 

The  Thirty-third  General  Assembly  further  defined  the 


INSURANCE  LEGISLATION  147 

securities  in  which  insurance  companies  are  allowed  to 
invest  funds.  In  1911  insurance  companies  were  authorized 
to  provide  for  a  co-insurance  clause  to  be  attached  to  the 
regular  policies  in  certain  cases,  upon  the  written  request 
of  any  person  desiring  insurance.  The  form  of  such  clause 
is  prescribed  and  the  conditions  under  which  it  may  be 
attached  are  specified.^^^ 

Further  regulations  for  insurance  companies  other  than 
life  were  prescribed  by  the  Thirty-sixth  General  Assembly. 
Policies  may  appear  in  the  name  of  the  issuing  company 
only.  Misleading  statements  relative  to  the  company  or 
agency  were  prohibited.  A  complete  rating  bureau  act  was 
also  placed  upon  the  statute  books,  but  was  repealed  two 
years  later.  The  Thirty-seventh  General  Assembly  rewrote 
several  sections  of  the  insurance  law.  Such  sections  were 
made  both  more  specific  and  more  inclusive.  The  section 
defining  the  kind  of  company  was  re-stated  and  the  condi- 
tions under  which  mutual  companies  may  transact  business 
were  clearly  set  forth  and  provision  made  for  regulating 
employer's  liability  and  workmen's  compensation  insur- 
ance. Membership  in  mutual  companies  is  defined;  every 
policy-holder  is  declared  to  be  a  member  and  entitled  to 
vote;  and  maximum  premiums,  unearned  premiums,  and 
assessments  are  defined  and  regulated.  Conditions  under 
which  existing  companies  may  come  under  the  new  provi- 
sions are  defined  and  the  requirements  relative  to  the  finan- 
cial statement  to  be  submitted  to  the  Commissioner  of 
Insurance  are  set  forth.  The  requirements  relative  to  for- 
eign companies  doing  business  in  this  State  were  re-stated 
and  supplemented.^^^ 

Mutual  Assessment  Insurance  Associations: — Mutual 
assessment  insurance  associations  are  associations  in  which 
a  number  of  persons  may  enter  into  contracts  with  each 
other  for  the  insurance  of  their  property  against  loss  or 


148  ECONOMIC  LEGISLATION  IN  IOWA 

damage.  Such  companies  exist  only  for  the  protection  af- 
forded and  not  for  profit.  Companies  of  this  class  were 
authorized  by  special  acts  of  incorporation  before  any  gen- 
eral insurance  laws  were  placed  upon  the  statute  books  of 
the  State.  Provision  for  their  organization  and  regulation 
by  general  legislation  was  first  made  in  the  insurance  act 
of  1868.  No  changes  relative  to  such  companies  were  made 
in  the  Code  of  1873,  but  beginning  with  the  Fifteenth  Gen- 
eral Assembly  a  separate  body  of  law  has  developed,  with 
special  reference  to  mutual  assessment  associations.-^^ 

The  Seventeenth  General  Assembly  enacted  a  law  for  the 
regulation  of  mutual  companies.  It  required  every  such 
association  to  report  annually  to  the  State  Auditor;  and 
foreign  companies  of  this  character  were  required  to  have 
a  certain  guaranteed  capital  before  being  permitted  to 
transact  business  in  the  State.  Moreover,  mutual  associa- 
tions were  required  to  pay  the  same  fees  when  making 
annual  reports  as  were  paid  by  other  companies.  The  pur- 
poses for  which  such  associations  might  be  formed  were 
made  more  inclusive  from  time  to  time,  and  various  regu- 
latory acts  were  passed.^^^ 

The  laws  applicable  to  mutual  associations  were  collected, 
arranged,  and  placed  in  one  chapter  of  the  Code  of  1897; 
and  in  1907  the  law  was  rewritten  and  expanded.  As  the 
law  now  stands  mutual  associations  may  be  organized  in  the 
same  manner  as  other  insurance  companies  are  formed. 
They  may  be  organized  for  the  insurance  of  property 
against  loss  or  damage  by  fire,  lightning,  tornadoes,  hail- 
storms, cyclones,  windstorms,  or  theft,  and  to  insure  plate 
glass  against  breakage.  They  may  insure  only  the  property 
belonging  to  the  members  of  the  associations,  and  church  or 
school  property  within  the  territory  in  which  they  do  busi- 
ness; and  they  may  reinsure  the  risks  of  similar  associa- 
tions. 

State  or  county  associations  may  be  formed.    Every  such 


INSURANCE  LEGISLATION  149 

company  must  have  the  words  '' mutual"  and  ''association" 
incorporated  in  its  title.  There  is  a  minimum  amount  of 
business  required  below  which  a  mutual  association  may  not 
be  authorized  to  operate.  Every  such  association  is  re- 
quired to  report  annually,  in  January,  to  the  Commissioner 
of  Insurance  upon  blanks  furnished  by  him  for  that  pur- 
pose. The  information  required  to  be  included  in  this  re- 
port covers  every  phase  of  the  business  and  shows  clearly 
the  amount  and  kind  of  business  done  and  the  financial  con- 
dition of  the  association.  These  reports  are  published  in 
the  Iowa  Insurance  Report  along  with  the  annual  reports 
of  other  companies  doing  business  in  the  State. 

Mutual  assessment  associations  are  obliged  to  pay  the 
same  fees  for  annual  reports  and  annual  certificates  of 
authority  as  are  paid  by  domestic  fire  insurance  companies. 
State  mutual  associations  are  authorized  to  build  up  a  re- 
insurance reserve.  The  maximum  liability  of  members 
must  be  fixed  by  the  associations  and  specified  in  their  poli- 
cies. Assessments  may  be  made  upon  the  members  of  any 
mutual  association  on  a  pro  rata  basis  when  the  assets  of 
the  company  are  insufficient  to  pay  losses  and  expenses.  In 
case  of  insolvency  such  a  ratable  assessment  may  be  levied 
as  is  necessary  to  meet  the  liabilities  of  the  association. 
Provision  is  made  for  the  cancellation  of  policies ;  and  some 
regulations  relative  to  officers  and  meetings  are  pre- 
scribed.-^'^ 

According  to  the  Iowa  Insurance  Report  for  1913  there 
were  one  hundred  and  fifty-four  county,  twenty  State,  and 
ten  tornado  and  hail  mutual  assessment  associations  doing 
business  in  the  State  of  Iowa  in  1912.  These  companies  had 
a  total  of  $695,725,533  worth  of  risks  in  force  on  January  1, 
1913.-^« 

The  Thirty- seventh  General  Assembly  enacted  a  law  in 
1917  which  authorizes  and  provides  for  the  regulation  of 
reciprocal  or  inter-insurance  contracts  among  individuals, 


150  ECONOMIC  LEGISLATION  IN  IOWA 

partnerships,  and  corporations  in  the  State  of  Iowa,  An 
inter-insurance  association  has  some  of  the  characteristics 
of  mutual  associations  and  some  of  the  Lloyds.  They  are 
usually  composed  of  merchants  or  manufacturers  for  the 
purpose  of  collectively  insuring  each  other.  Each  member 
agrees  to  be  liable  to  a  certain  amount ;  and  each  member  is 
both  insured  and  insurer.  He  is  debited  or  credited  on  each 
risk  according  to  the  outcome.  Usually  the  same  premiums 
are  charged  as  are  charged  by  stock  companies  and  the  re- 
turns made  on  the  basis  of  the  experience  in  each  risk 
amount  to  a  partial  return  of  the  premium  —  although  the 
return  may  not  be  directly  proportional  to  the  premium. 

The  act  authorized  insurance  of  this  character  and  set 
forth  regulations  governing  the  execution  of  contracts  and 
the  location  and  power  of  the  attorney.  Each  association, 
through  its  attorney,  must  file  with  the  Commissioner  of 
Insurance  a  certified  statement  setting  forth  the  name  of 
the  attorney  or  designation  under  which  contracts  are  is- 
sued ;  the  location  of  the  principal  office ;  the  kinds  of  insur- 
ance to  be  effected ;  a  copy  of  each  form  of  policy  or  contract 
under  which  insurance  is  to  be  effected ;  a  statement  to  the 
effect  that  the  minimum  number  of  applications  have  been 
made  on  the  minimum  number  of  separate  risks  aggregating 
not  less  than  a  specified  amount,  or  in  case  of  employer's 
liability  or  workmen's  compensation  insurance,  covering  a 
total  pay-roll  of  not  less  than  two  and  one-half  million  dol- 
lars ;  a  statement  that  there  is  in  the  hands  of  the  attorney 
a  specified  minimum  amount  for  the  payment  of  losses  and 
assets  of  a  certain  amount;  a  certified  financial  statement; 
an  instrument  authorizing  service  of  process ;  and  a  certifi- 
cate showing  the  deposit  of  funds.  Methods  of  serving 
process  and  rendering  judgment  are  specified.  Regulations 
as  to  statements  and  reports  are  prescribed.  The  power  to 
enter  such  contracts  is  extended  to  all  corporations  organ- 
ized under  the  laws  of  this  State.    Attorneys  are  required  to 


INSURANCE  LEGISLATION  151 

give  bonds.  The  same  fees  are  charged  that  are  required  of 
mutual  associations,  and  an  annual  tax  of  two  and  one-half 
per  cent  on  the  gross  premiums  collected  in  the  State  dur- 
ing the  year  is  required.  Contracts  are  regulated,  reinsur- 
ance is  permitted  under  certain  conditions,  and  penalties 
are  prescribed  for  the  violation  of  any  of  the  provisions  of 
the  act.2^^ 

LEGISLATION  PEETAINING  TO  LIFE  INSUEANCE 

The  law  of  1868  still  remains  the  foundation  of  life  in- 
surance legislation  in  Iowa.  This  law  outlined  regulations 
for  all  life  insurance  companies  transacting  business  in  the 
State.  It  included  both  domestic  and  foreign  companies; 
and  its  provisions  applied  to  joint  stock  companies  and  to 
associations  organized  upon  the  mutual  plan.  An  examina- 
tion of  this  early  act  is  necessary  in  order  to  understand  the 
law  as  it  stands  to-day. 

Under  the  provisions  of  the  life  insurance  act  of  1868 
stock  companies  were  required  to  have  a  capital  of  at  least 
one  hundred  thousand  dollars,  one-fourth  of  which  had  to 
be  paid-up  and  invested  in  certain  classes  of  securities  and 
deposited  with  the  Auditor  of  State.  Upon  satisfactory 
evidence  that  the  capital  stock  had  all  been  subscribed  in 
good  faith  and  that  the  required  amount  had  been  deposited 
with  the  Auditor,  a  certificate  was  issued  to  the  company. 
A  mutual  company  could  secure  a  certificate  of  authority 
to  transact  business  in  the  State  only  on  the  condition  that 
it  have  at  least  two  hundred  and  fifty  bona  fide  applications 
for  insurance  for  an  average  amount  of  one  thousand  dol- 
lars each.  A  list  of  the  applications  for  insurance  and  a 
deposit  in  an  amount  equal  to  three-fifths  of  the  whole  an- 
nual premium  on  the  application  had  to  be  deposited  with 
the  Auditor  of  State. 

Every  foreign  company  seeking  to  do  business  in  this 
State  was  required  to  have  a  capital  of  at  least  one  hundred 


152  ECONO:\IIC  LEGISLATION  IN  IOWA 

thousand  dollars,  invested  in  certain  designated  classes  of 
securities.  Such  securities  were  to  be  on  deposit  with  the 
chief  financial  ofiQcer  of  the  State  in  which  the  company  was 
incorporated.  Every  foreign  company  was  required  to  ap- 
point an  attorney  in  each  county  in  the  State  in  which  an 
agency  of  the  company  was  to  be  located,  upon  whom 
process  of  law  could  be  served.  A  certified  copy  of  the  arti- 
cles of  incorporation  had  also  to  be  filed  with  the  Auditor 
of  State.  An  annual  statement,  of  the  same  form  as  the 
statement  required  of  similar  domestic  companies,  was  re- 
quired of  every  foreign  company.  Every  agent  of  any  for- 
eign company  before  transacting  any  business  was,  more- 
over, required  to  obtain  a  certificate  of  authority  from  the 
Auditor,  stating  that  the  company  represented  had  com- 
plied with  the  provisions  of  the  Iowa  insurance  law. 

Every  life  insurance  company,  whether  domestic  or  for- 
eign, transacting  business  in  this  State  was  required  to  pre- 
pare under  oath  and  deposit  with  the  State  Auditor  an 
annual  report.  Such  report  was  to  be  made  in  January  of 
each  year  and  must  show  the  condition  of  the  company  on 
the  last  day  of  the  preceding  year.  This  statement,  which 
is  still  required,  must  contain  the  following  information : 

1.  The  name  of  the  company  and  where  located; 

2.  The  names  of  officers; 

3.  The  amount  of  capital,  if  a  stock  company; 

4.  The  amount  of  capital  paid  in,  if  a  stock  company; 

5.  The  value  of  real  estate  owned  by  the  company; 

6.  The  amount  of  cash  on  hand ; 

7.  The  amount  of  cash  deposited  in  banks,  giving  the  name  of 
bank  or  banks; 

8.  The  amount  of  cash  in  the  hands  of  agents,  and  in  the  course 
of  transmission ; 

9.  The  amount  of  bank  stock,  with  the  name  of  each  bank,  giving 
par  and  market  value  of  the  same; 

10.  The  amount  of  bonds  of  the  United  States,  and  all  other 


INSURANCE  LEGISLATION  153 

bonds  and  securities,  giving  names  and  amounts,  with  the  par  and 
market  value  of  each  kind ; 

11.  The  amount  of  loans  secured  by  first  mortgage  on   real 
estate,  and  where  such  real  estate  is  situated; 

12.  The  amount  of  all  other  bonds,  loans,  how  secured,  and  the 
rate  of  interest ; 

13.  The  amount  of  premium  notes  and  their  value  on  policies  in 
force,  if  a  mutual  company ; 

14.  The  amount  of  notes  given  for  unpaid  stock,  and  their  value 
in  detail,  if  a  stock  company ; 

15.  The  amount  of  assessments  unpaid  on  stock  or  premium 
notes ; 

16.  The  amount  of  interest  due  and  unpaid; 

17.  The  amount  of  all  other  securities; 

18.  The  amount  of  losses  due  and  unpaid; 

19.  The  amount  of  losses  adjusted  but  not  due; 

20.  The  amount  of  losses  unadjusted; 

21.  The  amount  of  claims  for  losses  resisted; 

22.  The  amount  of  money  borrowed  and  the  evidences  thereof; 

23.  The  amount  of  dividends  unpaid  on  stock; 

24.  The  amount  of  dividends  unpaid  on  policies; 

25.  The  amount  required  to  safely  reinsure    all    outstanding 
risks ; 

26.  The  amount  of  all  other  claims  against  the  company; 

27.  The  amount  of  net  cash  premiums  received; 

28.  The  amount  of  notes  received  for  premiums; 

29.  The  amount  of  interest  received  from  all  sources; 

30.  The  amount  received  from  all  other  sources; 

31.  The  amount  paid  for  losses; 

32.  The  amount  of  dividends  paid  to  policy  holders,  and  the 
amount  to  stockholders,  if  a  stock  company;    • 

33.  The  amount  of  commissions  and  salaries  paid  to  agents; 

34.  The  amount  paid  to  officers  for  salaries  and  other  com- 
pensation ; 

35.  The  amount  paid  for  taxes; 

36.  The  amount  of  all  other  payments  and  expenditures; 

37.  The  greatest  amount  insured  on  any  one  life; 


154  ECONOMIC  LEGISLATION  IN  IOWA 

38.  Tlie  amount  deposited  in  other  states  or  territories  as  se- 
curity for  policy  holders  therein,  stating  the  amount  in  each  state 
or  territory ; 

39.  The  amount  of  premiums  received  in  this  state  during  the 
year ; 

40.  The  amount  paid  for  losses  in  this  state  during  the  year; 

41.  The  whole  number  of  policies  issued  during  the  year,  with 
the  amount  of  insurance  effected  thereby,  and  total  amount  of  risk ; 

42.  All  other  items  of  information  necessary  to  enable  the  audi- 
tor to  correctly  estimate  the  cash  value  of  policies,  or  to  judge  of 
the  correctness  of  the  valuation  thereof. 

The  Auditor  was  authorized  to  determine  the  net  cash 
value  of  each  policy  upon  the  basis  of  specified  mortality 
tables.  Upon  the  establishment  of  such  value  every  company 
was  required  to  deposit  with  the  State  Auditor  securities, 
of  a  specified  class,  to  the  amount  of  the  ascertained  valua- 
tion of  all  its  policies  within  the  State.  Foreign  companies 
were  required  to  make  such  a  deposit  only  in  case  a  similar 
deposit  was  not  required  by  the  laws  of  the  State  in  which 
they  were  incorporated. 

Upon  compliance  with  the  preceding  conditions  the  Audi- 
tor issued  a  certificate  to  each  company  authorizing  it  to 
transact  business  in  the  State  for  a  period  of  one  year  from 
the  date  of  the  certificate.  A  failure  to  comply  with  the 
provisions  of  the  law  was  cause  for  the  dissolution  of  home 
companies  and  for  the  forfeiture  of  foreign  companies' 
right  to  do  business  in  the  State.  The  Auditor  was  also 
authorized  to  cause  examination  to  be  made  into  the  affairs 
of  any  company  doing  business  in  the  State  at  any  time. 
If  any  such  company  was  found  to  be  in  an  unsound  condi- 
tion it  could  be  enjoined  from  transacting  business  in  Iowa 
and  its  certificate  of  authority  withdrawn.  Securities  of  a 
defaulting  company,  on  deposit  with  the  Auditor,  became 
vested  in  the  State  for  the  benefit  of  the  policies  on  which 
such  deposits  were  made.    Life  insurance  was  declared  to 


INSURANCE  LEGISLATION  155 

be  exempt  from  execution  for  the  debts  of  the  insured 
person. 

A  retaliatory  system  of  fees  was  provided  for  foreign  life 
insurance  companies.  The  fees  and  penalties  for  such  com- 
panies were  to  be  as  great  as  those  required  of  Iowa  com- 
panies doing  business  in  their  respective  States.  Each 
company  was  charged  the  following  fees:  for  filing  each 
annual  statement,  including  the  first  application  of  any 
company,  five  dollars;  annual  certificates  of  authority  to 
transact  business  in  the  State,  one  dollar;  for  the  annual 
valuation  of  policies,  five  cents  per  thousand  dollars  of  in- 
surance ;  for  changing  securities,  twenty-five  cents  per  thou- 
sand dollars;  and  for  examination,  five  dollars  per  day 
spent  in  making  such  examination  and  necessary  expenses. 

The  classes  of  securities  in  which  insurance  funds  could 
be  invested  were  enumerated.  They  were  United  States 
stocks.  State  stocks,  and  bonds  or  mortgages  on  unencum- 
bered real  estate  worth  at  least  twice  the  amount  loaned 
thereon.  Insurance  companies  were  limited  in  their  power 
to  purchase  and  hold  real  estate.  Charters  of  life  insurance 
companies  were  to  run  fifty  years,  and  were  renewable. -^^ 

The  Fourteenth  General  Assembly  made  some  important 
changes  in  the  law  of  1868.  The  basis  for  the  valuation  of 
life  policies  was  changed  from  Dr.  Farr's  English  Life 
Table  No.  3  for  males,  with  interest  at  five  per  cent,  to  the 
American  Experience  Table  of  Mortality,  at  four  and  one- 
half  per  cent  interest.  The  same  act  provided  an  elaborate 
and  discriminatory  table  of  fees  for  foreign  companies  do- 
ing business  in  lowa.^^^ 

The  life  insurance  law  has  been  amended  many  times 
since  1872  and  several  important  changes  have  been  made. 
An  examination  of  these  changes  shows  that  no  established 
or  well  planned  policy  has  been  worked  out.  One  group  of 
amendments  has  for  its  purpose  the  protection  of  the  as- 
sured.   No  less  than  ten  acts  have  been  passed  defining  the 


156  ECONOMIC  LEGISLATION  IN  IOWA 

securities  in  which  it  is  lawful  for  insurance  companies  to 
invest  their  funds.  A  third  group  of  measures  regulates 
different  phases  of  the  method  of  carrying  on  business  by 
insurance  companies:  agents  are  regulated;  loans  on  poli- 
cies are  defined  and  authorized;  policies  are  required  to 
have  the  approval  of  certain  State  officers;  and  suitable 
medical  examination  is  defined  and  required.  In  1906  life 
insurance  companies  were  authorized  to  issue  health,  acci- 
dent, and  employers'  liability  insurance.  The  articles  of 
incorporation  of  every  life  insurance  company  transacting 
business  in  Iowa  must  be  approved  by  the  Commissioner  of 
Insurance ;  misrepresentation  is  prohibited,  and  other  mis- 
cellaneous regulations  are  provided.^^* 

Mutual  Benefit  Associations: — Separate  bodies  of  law 
have  been  developed  for  the  regulation  of  mutual  benefit 
associations  or  stipulated  premium  and  assessment  life  in- 
surance, and  for  fraternal  beneficiary  societies,  orders,  or 
associations. 

During  the  early  eighties  the  State  was  over-run  with 
agents  of  so-called  cooperative  insurance  or  mutual  benefit 
associations,  and  the  people  were  defrauded  in  large  num- 
bers. These  companies  were  not  bona  fide  insurance  com- 
panies, but  they  managed  in  one  way  or  another  to  procure 
certificates  of  authority  from  the  Auditor  to  do  business  in 
the  State.  In  1883  the  Auditor  refused  to  issue  certificates 
to  such  companies.  He  recommended  to  the  General  Assem- 
bly in  his  report  on  insurance  that  regulatory  laws  be  en- 
acted to  prevent  the  operation  of  fraudulent  companies. 
The  General  Assembly  took  no  action;  and  so  the  Auditor 
repeated  his  recommendations  and  protested  against  allow- 
ing such  companies  to  continue  operations,  since  they  ruined 
the  business  of  legitimate  companies  and  defrauded  the 
people. -^^ 

Finally,  in  1866  ''An  Act  to  Regulate  the  Organization 


INSURANCE  LEGISLATION  157 

and  Operation  of  Mutual  Benefit  Associations"  was  passed 
by  the  General  Assembly.  This  law  was  made  applicable  to 
all  associations  organized  upon  the  mutual  assessment,  co- 
operative, or  natural  fjremium  plans  for  the  purpose  of 
insuring  the  lives  of  individuals,  or  of  furnishing  benefits 
to  widows  or  heirs  of  deceased  members,  or  of  paying  en- 
dowment or  accident  indemnity  to  comply  with  the  provi- 
sions and  regulations  provided. 

Such  companies  were  required  to  have  their  articles  of 
incorporation  approved  and  recorded.  Nor  were  they  per- 
mitted to  take  names  similar  to  those  of  other  associations. 
The  law  was  detailed  in  its  regulatory  provisions,  following 
in  a  general  manner  the  regular  life  insurance  law,  but  it 
was  modified  in  such  a  way  as  to  be  applicable  to  the  associ- 
ations for  which  it  was  drawn.  The  Auditor  was  authorized 
to  make  examinations  at  any  time  and  to  revoke  the  author- 
ity of  such  corporations  to  transact  business  in  the  State  if 
they  were  found  to  be  operating  fraudulently.^-^  "^ 

No  change  was  made  in  the  act  of  1886  until  1900,  when 
the  entire  law  was  rewritten.  The  new  statute  authorizes 
any  number  of  persons,  not  less  than  five,  to  organize  a 
''stock  or  mutual  corporation  for  the  purpose  of  issuing 
policies  of  insurance  on  the  lives  of  individuals  upon  the 
stipulated  premium  plan,  and  to  grant  and  purchase  annu- 
ities ....  and  to  provide  for  indemnity  in  event  of 
death."  It  describes  the  content  of  the  articles  of  incorpor- 
ation. The  stipulated  premium  plan  is  defined  as  follows : 
''Any  corporation  ....  issuing  policies  of  insurance 
promising  money  or  other  benefits  to  the  policy  holder  .  . 
.  .  which  money  or  benefit  is  derived  from  stipulated 
premiums  collected  in  advance  from  its  policy  holders,  and 
from  interest  and  other  accumulations,  and  by  which  the 
money  or  other  benefits  so  realized  is  applied  to,  or  accumu- 
lated solely  for,  the  use  and  purpose  of  the  corporation  and 
the  prosecution  and  enjoyment  of  its  business"  is  a  stipu- 


158  ECONOMIC  LEGISLATION  IN  IOWA 

lated  premium  plan  company.  Definite  regulations  were 
provided  for  the  conduct  of  this  type  of  insurance  busi- 
ness 


257 


Some  slight  amendments  were  made  to  this  law  in  1904; 
and  in  1906  the  whole  act,  with  the  exception  of  the  section 
defining  stipulated  premium  plan  companies,  was  repealed. 
It  was  later  provided  that  assessment  life  associations 
should  not  thereafter  be  organized,  and  those  in  existence 
were  authorized  to  reincorporate  as  legal  reserve  com- 
panies.^^^ 

Fraternal  Beneficiary  Societies: — Fraternal  beneficiary 
societies,  orders,  or  associations  came  into  the  State  and 
developed  with  practically  no  regulation.  Some  of  these 
orders  were  of  real  benefit  to  their  members,  but  others 
were  little  less  than  fraudulent  enterprises,  organized  and 
promoted  for  the  benefit  of  a  few  unscrupulous  men  who 
profited  thereby  while  the  orders  were  new.  No  effort  was 
made  to  regulate  such  associations  by  legislation  until  very 
recent  years. 

The  Twenty-sixth  General  Assembly  passed  the  first  law 
defining  fraternal  beneficiary  societies,  orders,  or  associa- 
tions. Thus  an  association  was  declared  by  this  law  to  be 
''a  corporation,  society,  or  voluntary  association,  formed 
or  organized  and  carried  on  for  the  sole  benefit  of  its  mem- 
bers and  their  beneficiaries,  and  not  for  profit,  and  having 
a  lodge  system,  with  ritualistic  form  of  work  and  repre- 
sentative form  of  government." 

Such  organizations  were  permitted  to  levy  assessments 
on  their  members  for  the  purpose  of  paying  death  and  dis- 
ability benefits.  They  were  exempted  from  the  insurance 
statutes  of  the  State ;  but  they  were  to  comply  with  the  pro- 
visions of  the  act  for  their  regulation,  which  prescribed  the 
ordinary  regulations  relative  to  obtaining  authority  to 
transact  business  in  the  State.    They  were  required  under 


INSURANCE  LEGISLATION  159 

oath  to  make  detailed  reports  annually  setting  forth  an- 
swers to  a  series  of  questions.  Permits  must  be  secured  by 
compliance  with  the  rules  laid  down  in  the  act  before  busi- 
ness can  be  carried  on  in  the  State.  An  application  fee  of 
twenty-five  dollars  was  charged,  and  other  conditions  were 
set  forth.^^^ 

Such  associations  weje  later  subjected  to  examination  by 
the  State  Auditor,  who  was  authorized  to  revoke  or  suspend 
their  authority  to  do  business  in  Iowa.  They  were  also  re- 
quired to  submit  articles  of  incorporation  to  the  Attorney 
General  for  approval  before  permission  was  given  to  come 
into  the  State.  In  1907  a  table  of  mortuary  assessment 
rates  was  adopted  and  every  company  was  required  to  show 
that  its  rates  were  no  lower  than  those  prescribed  by  the 
table.  The  investment  of  funds  is  regulated  by  law  and  in 
1917  fraternal  beneficiary  societies  were  authorized  to  ex- 
tend the  scope  of  their  insurance  function  and  to  provide 
whole  family  protection.  Other  amendments  have  been 
made  from  time  to  time,  but  none  of  them  change  the  gen- 
eral plan  or  scope  of  the  law  as  it  stood  after  amendment  by 
the  Thirty-second  General  Assembly.^'^'^ 

LEGISLATION   APPLICABLE   TO   ALL   INSUEANCE   BUSINESS 

In  1904  the  first  of  a  series  of  important  general  regula- 
tory acts,  applicable  to  all  kinds  of  insurance  companies, 
was  placed  upon  the  statute  books.  The  laws  passed  by  the 
Thirtieth  General  Assembly  provide  for  the  examination  of 
insurance  companies,  for  the  licensing  of  insurance  agents, 
and  for  regulating  the  consolidating  or  reinsurance  of  the 
risks  of  insurance  companies. ^"^^ 

The  examination  of  insurance  companies  is  authorized 
and  required  to  be  made  at  least  once  every  two  years. 
Companies  are  required  to  assist  in  making  such  examina- 
tions by  producing  books  and  papers  for  inspection  and  by 
giving  such  other  information  as  may  be  desired.    The  State 


160  ECONOMIC  LEGISLATION  IN  IOWA 

Auditor  was  authorized  to  appoint  a  competent  actuary  as 
an  insurance  examiner;  and  the  old  policy  of  requiring 
companies  to  pay  the  expense  of  examination  was  discarded 
and  the  examiner  was  provided  with  a  substantial  salary. 
In  case  it  is  shown  upon  examination  that  any  company  is 
insolvent,  or  in  an  unsound  condition,  or  is  not  complying 
with  the  laws,  the  Auditor  is  authorized  to  revoke  the  cer- 
tificate of  such  company  to  transact  business  in  the  State, 
and  its  affairs  may  be  closed  up.  The  Auditor  is  to  use 
his  own  discretion  relative  to  the  publication  of  the  results 
of  any  examination.  Non-resident  companies  are  to  be  ex- 
amined only  upon  the  order  of  the  Executive  Council  and  at 
such  time  as  it  may  direct. 

Agents  of  insurance  companies,  except  county  mutuals 
and  fraternal  beneficiary  societies,  are  not  permitted  to 
solicit  business  in  any  manner  until  they  have  procured 
certificates  from  the  Auditor  of  State  authorizing  them  to 
act  as  agents.  Such  a  license  is  good  for  only  one  year  and 
must  be  renewed  annually.  The  Auditor  may  for  cause  de- 
cline to  issue  a  license,  or  he  may  revoke  licenses  already 
issued.  An  agent  for  any  domestic  company  is  charged 
fifty  cents  for  a  license  while  the  representative  of  a  non- 
resident company  must  pay  two  dollars. 

Any  insurance  company  organized  under  the  laws  of  Iowa 
is  permitted  to  consolidate  with  another  company  or  re- 
insure its  risks  with  another  company  only  upon  compliance 
with  certain  conditions.  The  plan  of  consolidation  or  re- 
insurance must  first  be  submitted  to  the  Auditor.  A  com- 
mission composed  of  the  Governor,  the  Auditor,  and  the 
Attorney  General  then  makes  such  an  examination  of  the 
conditions  and  affairs  of  the  company  as  is  deemed  proper. 
The  members  of  the  commission  study  the  interests  of  the 
policy-holders  and  act  according  to  the  manner  in  which 
such  interests  may  best  be  served  in  approving  or  refusing 
the  plan  submitted. 


INSURANCE  LEGISLATION  161 

In  1906  a  legislative  insurance  committee  was  created  to 
examine  into  the  business  and  practice  of  insurance  com- 
panies. This  committee  was  instructed  to  report  recom- 
mendations for  uniform  regulation  to  the  Thirty-second 
General  Assembly.^^^  The  committee  made  an  investigation 
of  the  insurance  companies  of  the  different  types  —  old  line 
life  companies,  assessment  associations,  fire  companies,  and 
fraternal  beneficiary  associations  —  and  reported  that  there 
was  a  general  compliance  with  the  laws  of  the  State  by  the 
insurance  companies  and  that  the  financial  condition  of  the 
companies  seemed  to  be  good,  in  so  far  as  the  committee 
was  able  to  determine.  Moreover,  the  committee  reported 
that  the  laws  regulating  the  insurance  business  in  Iowa  had 
kept  pace  with  the  rapid  growth  of  the  business,  observing 
that  it  seems  to  have  been  the  intent  of  previous  legislation 
to  protect  with  a  firm  hand  and  in  no  uncertain  manner  the 
rights  of  both  the  policy-holders  and  the  insurance  com- 
panies.^^^ 

The  committee  recommended  (1)  a  rewriting  of  the  law 
governing  mutual  fire,  tornado,  and  hailstorm  assessment 
insurance  associations;  (2)  a  uniform  or  standard  policy 
for  fire  insurance  companies;  and  (3)  provisions  for  co- 
insurance. The  Thirty-second  General  Assembly  enacted 
all  of  the  above  recommendations  into  law  almost  as  recom- 
mended. These  laws  were  noted  above  under  their  proper 
headings. 

The  committee,  moreover,  presented  for  consideration  a 
proposition  to  establish  the  office  of  State  Fire  Marshal  for 
the  investigation  of  the  causes  of  fires,  and  recommended 
the  immediate  establishment  of  a  separate  insurance  de- 
partment. The  office  of  State  Fire  Marshal  was  provided 
for  by  the  Thirty-fourth  General  Assembly,  and  in  1913  a 
separate  department  of  insurance  was  created.  Thus  all 
the  recommendations  made  by  the  committee  were  enacted 
into  law. 

11 


162  ECONOMIC  LEGISLATION  IN  IOWA 

The  Thirty-second  General  Assembly  prohibited  political 
contributions  by  corporations.  It  provided  for  proportion- 
ate representation  of  minority  stockholders  of  insurance 
corporations.  Moreover,  the  same  General  Assembly 
authorized  the  voting  of  stockholders  of  insurance  com- 
panies by  proxy,  and  required  every  insurance  company 
organized  upon  the  stock  plan  to  have  a  fully  paid-up  cap- 
ital of  at  least  one  hundred  thousand  dollars.  Further 
slight  amendments  were  made  in  1911.'^^^ 

The  Thirty-fifth  General  Assembly  established  an  *' In- 
surance Department  of  Iowa"  and  provided  for  a  "Com- 
missioner of  Insurance".  This  law  is  one  which  had  been 
badly  needed  for  many  years.  Previous  to  this  time  all  the 
insurance  business  of  the  State  had  been  handled  through 
the  office  of  the  State  Auditor,  although  it  was  impossible 
for  the  Auditor  to  give  adequate  attention  to  the  enforce- 
ment of  the  insurance  laws.  Indeed,  the  State  Auditors  in 
almost  every  annual  insurance  report  since  1880  had  recom- 
mended that  a  separate  department  of  insurance  be  created. 

The  new  law  provided  for  the  appointment  of  a  Commis- 
sioner of  Insurance  by  the  Governor,  with  the  consent  of 
the  Senate.  The  Commissioner  is  to  devote  his  entire  time 
to  the  duties  of  his  office,  and  his  salary  is  fixed  at  three 
thousand  dollars  per  year.  The  insurance  department  is 
provided  with  quarters  in  Des  Moines,  and  provision  is 
made  for  the  furnishing  of  necessary  supplies.  Authority 
to  appoint  a  deputy,  two  examiners,  and  the  necessary  as- 
sistants and  clerks  is  vested  in  the  Commissioner. 

The  Commissioner  of  Insurance  is  the  head  of  the  newly 
created  Insurance  Department  of  the  State.  He  has  gen- 
eral supervision  and  direction  of  all  insurance  business 
transacted  in  Iowa ;  and  the  administration  of  the  insurance 
laws  of  the  State  is  placed  in  his  hands.  All  the  powers  and 
duties  formerly  possessed  by  the  Auditor  of  State  relative 
to  insurance  are  now  vested  in  the  Commissioner  of  Insur- 


INSURANCE  LEGISLATION  163 

ance.  All  records,  reports,  and  securities  of  whatever  na- 
ture, relating  to  insurance,  and  formerly  required  by  law  to 
be  deposited  or  to  be  filed  with  the  Auditor  of  State  are  now 
filed  or  deposited  with  the  Commissioner  of  Insurance. 
Moreover,  all  the  fees  and  charges  of  every  character  re- 
quired by  law  to  be  paid  by  insurance  companies  are  now 
payable  to  the  Commissioner  of  Insurance.^®^ 

TAXATION  OF  INSUEANCE  COMPANIES288 

During  the  Territorial  period  insurance  companies  were 
taxed  under  the  general  property  tax,  as  were  all  other  cor- 
porations. But  this  plan  of  taxation  was  not  successful. 
Accordingly,  it  was  specifically  provided  in  the  Code  of 
1851  that  insurance  companies  should  be  taxed  one  per  cent 
for  county  purposes  and  one  per  cent  for  State  purposes 
upon  the  amount  of  the  premiums  taken  by  them  during  the 
year  previous  to  the  listing.  This  provision  was  to  apply 
to  insurance  companies  of  every  description  transacting 
business  within  the  State,  except  mutual  assessment  com- 
panies, which  were  exempt  from  taxation.-*^^ 

This  method  of  taxation  remained  unchanged  until  1868 
when  the  first  general  insurance  acts  were  passed.  The  new 
law  required  insurance  companies  to  pay  as  taxes  two  per 
cent  of  the  premiums  on  risks  taken  in  the  State  during  the 
preceding  year,  which  sum  was  the  total  amount  of  taxes 
upon  such  corporations  or  their  shares,  except  taxes  on  real 
estate.  An  amendatory  act  of  1872  instituted  a  policy  of 
retaliation  relative  to  foreign  insurance  companies.  A  com- 
plete sj^stem  of  fees  was  outlined,  wherein  non-resident 
companies  were  charged  higher  fees  than  were  domestic 
companies.  In  addition  to  the  fees  required,  a  tax  of  two 
and  one-half  per  cent  was  to  be  levied  on  the  gross  amount 
of  premiums  received  by  insurance  companies  within  the 
State  during  the  preceding  year,  and  such  tax  was  to  be  all 
that  would  be  levied  on  insurance  companies  in  this  State 


164  ECONOMIC  LEGISLATION  IN  IOWA 

for  State  or  local  purposes.  Joint  stock  companies  organ- 
ized under  the  laws  of  the  State  were  excepted  since  they 
were  assessed  under  the  general  revenue  law.-*'^ 

No  further  change  of  importance  was  made  in  the  meth- 
ods of  taxing  insurance  companies  until  the  adoption  of  the 
Code  of  1897.  In  that  Code  insurance  companies  were  di- 
\'ided  into  three  classes  for  purposes  of  taxation.  Class  one 
comprised  all  insurance  companies  organized  outside  of  the 
United  States.  They  w^ere  taxed  three  and  one-half  per 
cent  on  the  gross  premiums  received  by  them  in  Iowa  dur- 
ing the  preceding  year.  Class  two  included  all  companies 
organized  under  the  laws  of  any  State  other  than  Iowa. 
Such  companies  were  required  to  pay  into  the  State  treas- 
ury a  tax  of  two  and  one-half  per  cent  on  their  gross  pre- 
miums. Class  three  included  every  insurance  company  not 
included  in  the  first  two  classes  transacting  business  in  the 
State.  They  were  required  to  pay  a  tax  of  one  per  cent  of 
the  gross  premiums  received  by  them  on  assessments,  fees, 
dues,  or  premiums  for  business  done  in  Iowa,  after  deduct- 
ing the  amounts  actually  paid  for  losses  and  the  amount  of 
premium  returned.  These  taxes  were  in  lieu  of  all  other 
taxes,  State  and  local,  except  taxes  on  real  estate  and  spe- 
cial assessments.  County  mutual  assessment  societies  and 
fraternal  beneficiary  associations  were  not  included  in  any 
of  the  above  classes. ^^^ 

The  constitutionality  of  the  Code  provision  was  ques- 
tioned and  soon  tested  in  the  courts.  It  was  attacked  from 
the  standpoint  of  discrimination  between  companies  and 
because  such  companies  were  exempt  from  local  taxation. 
The  courts  held  that  the  discrimination  was  admissible  in 
that  the  tax  was  in  the  nature  of  a  license  fee  imposed  as  a 
condition  of  doing  business  —  a  fee  which  the  State  has  the 
right  to  impose.  On  the  other  hand,  the  courts  held  that 
such  companies  were  not  exempt  from  local  taxation.-"^ 

The  effects  of  the  second  decision  were  nullified  by  the 


INSURANCE  LEGISLATION  165 

law  enacted  in  1900  which  repealed  the  exemption  clause  in 
the  Code  of  1897,  but  accomplished  the  same  purpose  by 
providing  that  assets  should  be  offset  by  liabilities  for  the 
purpose  of  assessment  and  taxation.  In  1902  the  rate  of 
taxation  on  the  gross  amount  of  premiums  received  by  for- 
eign insurance  companies  was  reduced  from  three  and  one- 
half  to  two  and  one-half  per  cent.  Later  the  funds  of 
fraternal  beneficiary  associations  were  exempted  from  tax- 
ation and  certain  reductions  were  allowed  in  the  taxes  of 
fire  insurance  companies.^^^ 

EECAPITULATION 

In  summarizing  the  insurance  legislation  of  Iowa,  the 
first  noticeable  feature  is  the  absence  of  any  comprehensive 
plan  of  legislation  relative  to  this  very  important  business. 
What  statutory  regulations  there  are  have  developed  in  the 
following  order.  During  the  Territorial  period  insurance 
companies  were  chartered  by  special  incorporation  acts. 
The  Constitution  of  1846  prohibited  the  enactment  of  spe- 
cial acts  of  incorporation,  and  so  the  General  Assembly 
passed  a  general  incorporation  law  at  its  first  session  fol- 
lowing the  adoption  of  the  Constitution.  A  period  of  ten 
years  elapsed  during  which  insurance  companies  were  per- 
mitted to  incorporate  under  the  general  corporation  law 
and  to  pursue  their  business  without  outside  regulation. 
An  insurance  law,  applicable  to  fire  insurance  companies 
only  and  incomplete  in  many  essential  features,  was  passed 
in  1857;  and  the  provisions  of  this  act  were  soon  extended 
to  life  insurance  companies  by  an  amendment. 

The  only  comprehensive  insurance  laws  thus  far  enacted 
in  this  State  were  placed  upon  the  statute  books  in  1868. 
The  two  acts  then  passed  —  one  applicable  to  life  insurance 
companies  and  the  other  dealing  with  insurance  companies 
other  than  life  —  have  been  amended,  added  to,  and  sub- 
tracted from  upon  many  occasions,  but  they  have  never 


166  ECONOMIC  LEGISLATION  IN  IOWA 

been  thorouglily  and  carefully  revised.  They  seemed  to  be 
very  comprehensive  at  the  time  of  their  enactment;  but  it 
should  be  remembered  that  although  a  tremendous  develop- 
ment was  taking  place  in  the  insurance  business  at  that  time 
there  was  almost  universal  ignorance  as  to  the  basic  prin- 
ciples of  the  business. 

The  policy  instituted  in  1868  of  dividing  the  insurance 
laws  into  two  groups  has  been  adhered  to  ever  since;  and 
so  two  almost  separate  bodies  of  law  have  developed.  The 
insurance  business  has  grown  rapidly  and  the  laAvs  have 
been  made  more  inclusive.  The  fire  insurance  law  has  been 
developed  and  stretched  until  it  is  applicable  to  nine  dis- 
tinct classes  of  insurance  risks.  Distinct  types  of  life  in- 
surance have  also  developed,  making  regulatory  legislation 
imperative. 

Beginning  with  1904  a  new  body  of  insurance  law  has 
developed  which  is  applicable  to  all  insurance  companies. 
This  law  is  broadly  regulatory.  It  insures  an  increased 
amount  of  publicity  and  provides  for  regular  and  thorough 
examinations  into  the  financial  conditions  of  insurance 
companies.  A  distinct  advance  in  insurance  legislation  was 
made  in  1913.  After  many  years  of  agitation  a  department 
of  insurance  was  established.  The  insurance  business  of 
the  State  was  removed  from  the  over-crowded  Auditor's 
office  and  placed  in  a  separate  department  under  a  special 
officer  who  devotes  his  entire  time  and  energy  to  the  admin- 
istration of  the  insurance  laws. 

The  legislative  action  relative  to  insurance  has  been  noted 
briefly.  Have  the  laws  been  satisfactory?  Without  at- 
tempting to  answer  this  question,  a  few  points  of  interest 
may  be  noted  in  this  connection.  Early  in  the  history  of 
insurance  in  Iowa  foreign  companies  were  discriminated 
against  in  the  matter  of  both  fees  and  taxes ;  and  they  are 
still  discriminated  against.  Beginning  about  1880  fraud- 
ulent cooperative  life  and  beneficiary  associations  over-ran 


INSURANCE  LEGISLATION  167 

the  State.  They  defrauded  the  people  and  decreased  the 
business  of  legitimate  companies;  but  no  legislative  re- 
straint was  attempted  until  1886.  For  more  than  thirty- 
years  State  Auditors  recommended  the  creation  of  a  sep- 
arate department  of  insurance.  They  made  this  recom- 
mendation because  they  realized  their  inability  to  ade- 
quately handle  the  work  in  addition  to  their  other  duties. 
A  separate  insurance  department  was  established  in  1913. 

There  are  other  features  of  the  Iowa  insurance  legisla- 
tion which  have  been  very  satisfactory.  From  the  time  the 
first  insurance  law  was  passed  there  has  been  publicity:, 
companies  make  complete  reports  to  the  State  and  these 
reports  are  published.  Insurance  companies  have  for 
many  years  been  subject  to  examination  by  a  State  official. 
The  form  of  policies  and  the  articles  of  incorporation  are 
subject  to  the  approval  of  a  State  official;  and  the  invest- 
ment of  funds  has  secured  much  legislative  attention.  Life 
companies  are  required  to  keep  securities  on  deposit  with 
the  Commissioner  of  Insurance  to  guarantee  protection  to 
policy-holders.  A  special  method  of  taxation  has  been  ap- 
plied to  insurance  companies  and  has  worked  successfully. 

Eecent  developments  are  full  of  promise.  Uniform  poli- 
cies are  required  of  all  fire  insurance  companies.  The 
business  itself  has  become  established  upon  tried  prin- 
ciples. The  establishment  of  an  insurance  department, 
separate  from  the  Auditor's  office,  with  the  Commissioner 
of  Insurance  at  its  head,  should  bring  about  a  more  careful 
administration  of  the  laws.  Moreover,  the  Commissioner 
of  Insurance,  since  he  devotes  all  his  time  to  the  insurance 
problem,  should  be  able  to  make  recommendations  for 
needed  changes  in  the  insurance  laws  in  such  a  manner  as 
to  secure  the  careful  consideration  of  the  General  Assem- 
bly. In  general  it  may  be  said  that  under  the  Iowa  laws 
policy-holders  have  been  adequately  protected  and  the 
insurance  business  has  thrived  in  the  State. 


VIII 
BANKING 

The  charter  of  the  second  Bank  of  the  United  States 
expired  in  1836  and  was  not  renewed.  The  steadying  in- 
fluence exerted  by  this  bank  having  been  removed,  the  num- 
ber of  State  banks  multiplied  rapidly  and  an  enormous 
increase  in  the  issue  of  State  bank-notes  followed.  There 
sprang  up  many  State  banks  which  were  operated  under 
loosely  drawn  statutes  that  were  laxly  enforced;  while  in 
many  cases  they  were  unhampered  by  legal  restrictions  of 
any  kind.  The  result  was  an  era  of  speculation  which  cul- 
minated in  the  panic  of  1837. 

The  panic  and  the  demoralized  condition  of  the  currency 
throughout  the  country  hastened  banking  legislation.  Some 
of  the  eastern  and  southern  States  enacted  banking  laws 
based  upon  conservative  and  sound  principles.  The  State 
of  Indiana  in  the  West  also  established  a  sound  system  of 
banking.  The  western  States,  however,  felt  the  immediate 
need  for  a  more  plentiful  supply  of  money.  They  were 
eager  for  rapid  development,  but  they  did  not  understand 
the  principles  of  sound  banking.  The  result  was  that  many 
of  them  enacted  loosely  constructed  and  poorly  thought  out 
laws  which  permitted,  if  they  did  not  encourage,  a  flood  of 
worthless  bank-notes. 

THE  MINERS'  BANK  OF  DUBUQUE 

The  first  settlements  in  the  Iowa  country  were  being 
made  at  the  time  when  the  charter  of  the  second  United 
States  Bank  expired.  At  Dubuque  the  lead  mining  industry 
made  that  city  a  commercial  center  early  in  the  development 

168 


BANKING  169 

of  the  Territory;  indeed,  it  had  become  a  sort  of  clearing 
house  for  the  surrounding  country.  Although  money  was 
scarce  banks  of  issue  were  plentiful  in  the  neighboring  Ter- 
ritories and  States.  Thus  it  is  not  surprising  that  certain 
citizens  of  Dubuque  made  application  to  the  Legislative 
Assembly  of  the  Territory  of  Wisconsin  for  a  bank  charter. 

On  November  30,  1836,  an  act  was  approved  by  the  legis- 
lature of  the  Territory  incorporating  the  Miners'  Bank  of 
Dubuque.  Congress  amended  and  confirmed  the  charter  on 
March  3,  1837.  Moreover,  this  institution  was  the  first  and 
only  authorized  bank  in  what  is  now  the  State  of  Iowa  until 
1858. 

The  charter  of  the  Miners'  Bank  of  Dubuque  provided 
for  a  capital  of  two  hundred  thousand  dollars  in  shares  of 
one  hundred  dollars  each.  Commissioners  named  in  the 
charter  were  authorized  to  open  books  for  the  subscription 
of  the  capital  stock ;  and  they  were  to  act  as  directors  until 
a  regular  election  of  officers  could  be  held.  One-tenth  of 
the  capital  stock  was  to  be  paid  in  at  the  time  of  subscrip- 
tion and  the  balance  in  payments  of  not  more  than  ten  dol- 
lars per  share  as  called  for  by  the  directors.  No  notes  were 
to  be  issued  until  forty  thousand  dollars  of  the  capital  stock 
was  paid  up,  and  notes  in  denominations  of  less  than  five 
dollars  were  not  permitted.  The  legislature,  moreover,  re- 
served the  right  to  prohibit  notes  of  less  than  ten  dollars  in 
four  years,  and  notes  of  less  than  twenty  dollars  in  ten 
years.  But  no  provision  was  made  concerning  the  kind  of 
money  that  was  to  constitute  the  capital  stock.  This  omis- 
sion proved  to  be  a  fatal  weakness  in  the  stability  of  the 
bank. 

The  management  of  the  bank  was  vested  in  a  board  of 
seven  directors  who  were  to  be  resident  stockholders.  They 
were  to  be  elected  by  a  plurality  of  votes  cast  in  person  or 
by  proxy.  Each  stockholder  was  to  have  one  vote  per  share 
of  stock  owned  up  to  ten,  and  one  vote  for  every  ten  shares 


170  ECONO]\nC  LEGISLATION  IN  IOWA 

above  that  number.  The  directors  were  given  power  to  in- 
crease the  capital  stock  up  to  five  hundred  thousand  dollars 
upon  obtaining  the  consent  of  Congress.  For  the  manage- 
ment of  the  corporation  they  could  make  the  necessary  by- 
laws, not  in  conflict  with  the  Constitution  and  laws  of  the 
United  States  and  the  laws  of  the  Territory.  They  were 
authorized  to  declare  semi-annual  dividends;  and  the  by- 
laws were  to  determine  the  number  of  directors  necessary 
to  constitute  a  board  of  discount.  The  bank  was  permitted 
to  charge  seven  per  cent  interest;  and  its  charter  was  lim- 
ited in  duration  to  twenty  years. 

The  legislature  reserved  the  right  to  require  a  sworn 
statement  from  the  president  and  cashier  as  to  the  condition 
of  the  bank  at  any  time.  Such  statements  were  to  show  the 
following  information :  amount  of  deposits,  profits  on  hand, 
bills  in  circulation,  debts  due  from  directors  and  stockhold- 
ers, debts  due  from  other  persons  or  corporations,  amount 
of  specie  in  the  bank,  amount  of  bills  of  other  banks,  amount 
of  deposits  in  other  banks,  amount  of  real  estate  and  other 
property,  and  the  amount  of  capital  actually  paid  in. 

The  total  amount  of  indebtedness  of  all  kinds,  over  and 
above  the  amount  of  specie  then  deposited  was  limited  at 
any  one  time  to  three  times  the  amount  of  capital  stock 
actually  paid  in.  In  case  the  indebtedness  was  increased 
beyond  this  limit,  the  directors  under  whose  administration 
the  excess  debt  had  been  created  were  to  be  liable  in  their 
separate  and  private  capacities  in  the  contingency  that  the 
bank  should  not  be  able  to  pay  its  liabilities. 

The  bank  was  limited  in  its  power  to  hold  real  estate  to 
such  property  as  might  be  necessary  for  the  convenient 
transaction  of  its  business  and  that  taken  in  the  satisfaction 
of  debts  owing  to  it.  It  was  also  denied  the  privilege  of 
purchasing  or  selling  merchandise,  except  when  such  was 
pledged  for  the  security  of  debts.  The  assignment  or  trans- 
fer of  stock  was  not  considered  valid  until  it  had  been  reg- 


BANKING  171 

istered  on  the  stock-books  of  the  corporation.  Nor  could 
stock  be  assigned  or  transferred  until  all  notes,  debts,  dues 
or  endorsements  of  whatever  nature  to  the  corporation 
were  first  paid.  Stock  was  liable  to  execution  for  debt  in 
the  same  manner  as  other  personal  property  was  liable 
under  the  laws  of  the  Territory .^^^ 

When  the  matter  was  brought  before  Congress  the  fol- 
lowing limitations,  which  amounted  to  modifications  of  the 
charter,  were  prescribed :  the  bank  was  forbidden  to  issue 
bills  or  notes  for  circulation  until  one-half  of  its  capital 
stock  was  paid  up ;  the  directors  were  permitted  to  call  for 
forty  per  cent  of  the  unpaid  capital  at  one  time,  instead  of 
ten  per  cent,  if  they  thought  best;  the  increase  of  capital 
was  prohibited  unless  sanctioned  by  Congress;  aggregate 
debt,  over  and  above  actual  deposits,  was  limited  to  twice 
the  paid-up  capital ;  and  the  charter  was  to  be  forfeited  if 
the  corporation  was  not  organized  and  ready  for  business 
by  January  1, 1838.2^^ 

The  commissioners  accepted  the  charter  as  amended  by 
Congress.  Subscription  books  were  opened  and  the  bank 
was  ready  for  the  transaction  of  business  on  October  31, 
1837.  The  panic  had  begun  when  the  bank  opened  its  doors, 
and  its  existence  proved  to  be  precarious  from  the  first. 
There  were  rumors  of  the  instability  of  the  bank  almost  as 
soon  as  it  began  the  transaction  of  business.  It  was  exam- 
ined by  two  legislative  committees  within  a  year  and  some 
irregularities  were  discovered.  The  committees,  however, 
reported  the  bank  to  be  solvent  and  recommended  that  it  be 
allowed  to  continue  in  business.^^'* 

The  Iowa  country  was  organized  as  a  separate  Territory 
in  1838 ;  and  early  in  the  first  session  of  the  Legislative  As- 
sembly of  the  new  Territory  a  committee  was  appointed  to 
examine  into  the  condition  of  the  Miners '  Bank  of  Dubuque. 
This  committee  also  reported  the  bank  to  be  solvent.-"" 

The  bank,  however,  never  did  a  large  business,  omng 


172  ECONOMIC  LEGISLATION  IN  IOWA 

partly  to  the  panic  of  1837  and  partly  to  the  hard  times  that 
followed.  Its  bills  were  not  put  into  circulation  to  any 
great  extent  and  its  whole  existence  was  precarious.  The 
reports  of  the  legislative  investigating  committees  indicate 
that  the  bank  was  not  well  managed  during  the  early  part 
of  its  career  and  that  it  had  been  fraudulently  capitalized. 
For  instance,  the  charter  required  that  one  hundred  thou- 
sand dollars  of  capital  be  actually  paid  up  before  any  busi- 
ness was  transacted ;  and  the  investigations  showed  that  the 
stock  had  been  paid  for  largely  by  stockholders'  notes.  The 
bank  struggled  along  for  about  seven  years  and  finally  dis- 
continued business,  after  its  charter  had  been  repealed, 
with  but  a  small  loss  to  its  billholders.  It  at  first  maintained 
that  the  act  repealing  its  charter  was  unconstitutional  and 
attempted  to  continue  business.  The  validity  of  the  re- 
pealing act  was  upheld  by  the  courts,  however,  and  the  af- 
fairs of  the  bank  were  closed  in  1845 .^^^ 

BANKING  LEGISLATION  BEFORE   1858 

With  the  exception  of  the  Miners '  Bank  of  Dubuque  there 
were  no  banks  authorized  during  the  Territorial  period. 
Indeed,  one  of  the  first  measures  passed  by  the  Legislative 
Assembly  of  the  Territory  was  '^An  Act  to  restrain  un- 
incorporated Banking  Associations".  This  act  provided 
that  any  person,  unauthorized  by  express  word  of  law,  who 
should  become  a  member  of  any  company  for  the  purpose 
of  issuing  notes  or  bank  bills,  should  be  subject  to  a  fine  of 
one  thousand  dollars.^^^ 

The  subject  of  banking  received  much  attention  in  the 
constitutional  conventions  of  1844  and  1846.  In  both  these 
conventions  the  majority  of  the  delegates  were  opposed  to 
banking  in  any  form  in  which  they  understood  it;  and  so 
the  Constitution  of  Iowa  which  was  finally  adopted  in  1846 
contained  the  following  provisions  r^^^ 

1.     No  corporate  body  shall  hereafter  be  created,  renewed  or  ex- 


BANKING  173 

tended,  with  the  privilege  of  making,  issuing,  or  putting  in  circula- 
tion, any  bill,  check,  ticket,  certificate,  promissory  note,  or  other 
paper,  or  the  paper  of  any  bank,  to  circulate  as  money.  The  general 
assembly  of  this  state  shall  prohibit,  by  law,  any  person  or  persons, 
association,  company  or  corporation,  from  exercising  the  privileges 
of  banking,  or  creating  paper  to  circulate  as  money. 

2.  Corporations  shall  not  be  created  in  this  state  by  special  laws, 
except  for  political  or  municipal  purposes;  but  the  general  assembly 
shall  provide  by  general  laws,  for  the  organization  of  all  other  cor- 
porations, except  corporations  with  banking  privileges,  the  creation 
of  which  is  prohibited.  The  stockholders  shall  be  subject  to  such 
liabilities  and  restrictions  as  shall  be  provided  by  law.  The  state 
shall  not  directly  or  indirectly  become  a  stockholder  in  any  cor- 
poration. 

The  Code  of  1851  contained  similar  stringent  statutory 
prohibitions.  Any  person  who  became  a  member  of  or  sub- 
scribed to  any  company  formed  for  the  purpose  of  putting 
any  kind  of  paper  in  circulation  as  money  was  liable  to  a 
year's  imprisonment  and  a  heayy  fine.  Corporations  were 
not  to  employ  any  part  of  their  funds  or  effects  for  the  pur- 
pose of  introducing  any  kind  of  notes  or  evidences  of  debts 
to  be  put  in  circulation.  And  ''no  person,  association,  or 
corporation  shall  issue  any  bills,  drafts,  or  other  evidences 
of  debt  to  be  loaned  or  put  in  circulation  as  money  or  to 
pass  or  be  used  as  a  currency  or  circulating  medium;  and 
every  person,  association,  or  corporation,  and  every  mem- 
ber thereof  who  violates  the  provisions  of  this  section  shall 
be  punished  by  fine  not  exceeding  one  thousand  dollars.  "^"^^ 

It  appears  from  these  provisions  that  the  framers  of  the 
Constitution  of  1846  and  the  men  responsible  for  the  Code  of 
1851  were  opposed  to  banks  of  issue,  and  that  they  had  such 
banks  in  mind  rather  than  ordinary  banks  of  discount  and 
deposit.  At  all  events  the  development  of  the  country  and 
the  increase  in  population  made  necessary  the  conduct  of  a 
frontier  banking  business.    Money  was  scarce  and  the  fron- 


174  ECONOMIC  LEGISLATION  IN  IOWA 

tier  banker  served  the  settlers  by  entering  land  on  time. 
The  rapid  development  of  the  country  increased  the  demand 
for  money  as  a  medium  of  exchange;  but  specie  was  not 
available  and  there  was  no  provision  in  the  Constitution  or 
in  the  statutes  by  which  the  banking  needs  of  the  people  of 
the  State  could  be  met.  Several  of  the  surrounding  States 
had  established  systems  of  practically  free  banking.  Con- 
sequently Iowa  became  a  sort  of  dumping  ground  for  the 
fluctuating  currency  from  the  other  States.  Under  such 
conditions  the  people  of  Iowa  suffered  without  recourse 
from  worthless  bank-notes.^^^ 

Enterprising  business  men  within  the  State  concluded 
that  if  such  currency  must  be  used  they  might  as  well  profit 
by  it.  At  this  time  the  newly  organized  Territory  of  Ne- 
braska was  willing  to  grant  charters ;  accordingly  Iowa  men 
incorporated  several  concerns  in  Nebraska  for  the  purpose 
of  issuing  currency  to  be  used  by  them  in  Iowa.  Some  of 
the  companies  did  a  thriving  business  and  served  the  people 
of  the  State  more  justly  and  conveniently  than  they  had 
been  served  by  outside  organizations.  Not  one  of  the  con- 
cerns so  organized,  however,  was  able  to  endure  the  panic 
of  1857.281 

The  natural  development  of  the  State  rendered  banking 
facilities  more  and  more  a  necessity.  Furthermore,  the 
hard  times  and  the  worthless  paper  currency  helped  to 
open  the  eyes  of  legislators  and  public  men  to  this  need. 
Gradually  the  people  of  the  State  came  to  see  that  some 
stable  system  of  banking  was  essential  to  the  continuous 
development  of  the  business  interests  of  the  State,  and  a 
vote  of  the  electors  in  1856  favored  a  convention  to  revise 
the  Constitution.  The  convention  met  in  January,  1857; 
and  one  of  the  most  important  questions  which  came  before 
it  was  that  of  banking.  The  work  of  the  convention  was 
completed  on  March  5,  1857,  and  the  new  Constitution  was 
submitted  to  the  electors  of  the  State  at  the  August  election 


BANKING  175 

of  the  same  year.  It  was  approved  and  went  into  effect  by 
proclamation  of  the  Governor  on  September  3,  1857.  This 
instrument  provided,  among  other  things,  that  the  General 
Assembly  might  create  corporations  with  banking  powers. 
The  sections  relating  to  banking  are  as  follows  :^^^ 

Sec.  4.  No  political  or  municipal  corporation  shall  become  a 
stockholder  in  any  banking  corporation,  directly  or  indirectly. 

Sec.  5.  No  act  of  the  General  Assembly,  authorizing  or  creating 
corporations  or  associations  with  banking  powers,  nor  amendments 
thereto  shall  take  effect,  or  in  any  manner  be  in  force,  until  the 
same  shall  have  been  submitted,  separately,  to  the  people,  at  a  gen- 
eral or  special  election,  as  provided  by  law,  to  be  held  not  less  than 
three  months  after  the  passage  of  the  act,  and  shall  have  been  ap- 
proved by  a  majority  of  all  the  electors  voting  for  and  against  it  at 
such  election. 

Sec  6.  Subject  to  the  provisions  of  the  foregoing  section,  the 
General  Assembly  may  also  provide  for  the  establishment  of  a  State 
Bank  with  branches. 

Sec  7.  If  a  State  Bank  be  established,  it  shall  be  founded  on  an 
actual  specie  basis,  and  the  branches  shall  be  mutually  responsible 
for  each  other's  liabilities  upon  all  notes,  bills,  and  other  issues  in- 
tended for  circulation  as  money. 

Sec  8.  If  a  general  Banking  law  shall  be  enacted,  it  shall  pro- 
vide for  the  registry  and  countersigning,  by  an  officer  of  State,  of 
all  bills,  or  paper  credit  designed  to  circulate  as  money,  and  require 
security  to  the  full  amount  thereof,  to  be  deposited  with  the  State 
Treasurer,  in  United  States  stocks,  or  in  interest  paying  stocks  of 
states  in  good  credit  and  standing,  to  be  rated  at  ten  per  cent,  below 
their  average  value  in  the  City  of  New  York,  for  the  thirty  days 
next  preceding  their  deposit ;  and  in  case  of  a  depreciation  of  any 
portion  of  said  stocks,  to  the  amount  of  ten  per  cent,  on  the  dollar, 
the  bank  or  banks  owning  said  stocks  shall  be  required  to  make  up 
said  deficiency  by  depositing  additional  stocks;  and  said  law  shall 
also  provide  for  the  recording  of  the  names  of  all  stockholders  in 
such  corporations,  the  amount  of  stock  held  by  each,  the  time  of 
any  transfer,  and  to  whom. 


176  ECONOMIC  LEGISLATION  IN  IOWA 

Sec.  9.  Every  stockholder  in  a  banking  corporation  or  institu- 
tion shall  be  individually  responsible  and  liable  to  its  creditors,  over 
and  above  the  amount  of  stock  by  him  or  her  held,  to  an  amount 
equal  to  his  or  her  respective  shares  so  held  for  all  of  its  liabilities, 
accruing  while  he  or  she  remains  such  stockholder. 

Sec.  10.  In  case  of  the  insolvency  of  any  banking  institution,  the 
bill-holders  shall  have  a  preference  over  its  other  creditors. 

Sec.  11.  The  suspension  of  specie  payments  by  banking  institu- 
tions shall  never  be  permitted  or  sanctioned. 

Sec.  12.  Subject  to  the  provisions  of  this  article,  the  Genera;l  As- 
sembly shall  have  power  to  amend  or  repeal  all  laws  for  the  organ- 
ization or  creation  of  corporations,  or  granting  of  special  or  exclu- 
sive privileges  or  immunities,  by  a  vote  of  two-thirds  of  each  branch 
of  the  General  Assembly ;  and  no  exclusive  privileges,  except  as  in 
this  article  provided,  shall  ever  be  granted. 

These  sections  indicate  the  change  of  sentiment  that  had 
taken  place  since  the  first  Constitution  was  adopted  in  1846. 

The  year  1857  closed  with  great  financial  and  commercial 
depression  throughout  the  country.  Most  of  the  western 
banks  suspended  specie  pajTuent.  Industry  was  almost  at 
a  standstill;  and  the  Nebraska  banks,  whose  notes  were  in 
general  circulation  in  Iowa,  failed  with  great  loss  to  thou- 
sands of  Iowa  citizens.  AVlien  the  Seventh  General  Assem- 
bly convened  at  Des  Moines  on  January  11,  1858,  financial 
conditions  in  the  State  were  wholly  demoralized. 

The  new  constitutional  provisions  having  made  it  pos- 
sible for  the  General  Assembly  to  take  action  in  the  matter 
of  banking,  a  majority  of  the  members  favored  the  estab- 
lishment of  a  banking  system.  The  retiring  Governor, 
James  W.  Grimes,  in  his  final  message,  which  was  read  to 
the  General  Assembly  on  January  12, 1858,  made  the  follow- 
ing observations  :^^^ 

The  constitution  authorizes  the  General  Assembly  to  establish, 
with  the  subsequent  approval  of  the  people; 

1.     A  State  Bank  with  branches,  to  be  founded  upon  an  actual 


BANKING  177 

specie  basis,  and  the  branches  to  be  mutually  liable  for  each  other's 
issues. 

2.  A  general  free  banking  law  with  the  restrictions  and  limita- 
tions imposed  by  Art.  8,  Sec,  8  of  the  Constitution. 

In  acting  upon  this  subject,  it  will  doubtless  be  ever  borne  in 
mind  by  the  General  Assembly,  that  banks  are  to  be  established  to 
secure  the  public  welfare,  and  not  to  promote  the  purposes  of  stock- 
holders and  capitalists ;  and  that  it  is  far  better  that  banks  should 
realize  small  profits,  than  that  the  public  should  be  liable  to  injury 
by  their  suspension  or  failure. 

Governor  Lowe  in  his  inaugural  address,  whicli  was  de- 
livered a  few  days  later,  recommended  the  enactment  of  a 
carefully  regulated  State  banking  system  which  would  pro- 
tect bill-holders  and  be  inviting  to  capitalists.-^^ 

Two  laws  providing  for  banks  were  enacted.  One  was 
entitled  *'An  Act  authorizing  General  Banking  in  the  State 
of  lowa",^^^  and  the  other  **  An  Act  to  Incorporate  the  State 
Bank  of  lowa".^^^  The  latter  act  proved  to  be  the  more 
popular  of  the  two,  but  both  having  been  submitted  to  a  vote 
of  the  electors  of  the  State  were  adopted  by  them  before  the 
close  of  the  year.^^'^  Measures  were  soon  taken  to  put  the 
State  Bank  into  operation,  but  it  does  not  appear  that  any 
banks  were  ever  organized  under  the  general  banking  law. 

THE  STATE  BANK  OF  IOWA 

The  act  to  incorporate  the  State  Bank  of  Iowa  was  drawn 
with  great  care.  It  defined  in  minute  detail  the  duties,  pow- 
ers, and  responsibilities  of  the  bank  and  its  branches.  '  *  The 
system  adopted  followed  closely  the  provisions  of  the  stat- 
utes under  which  the  State  Banks  of  both  Ohio  and  Indiana 
were  organized,  retaining  the  leading  features  of  both  sys- 
tems, as  to  the  relations  which  the  branches  bore  to  each 
other  and  to  the  parent  bank,  the  safeguards  enacted  for 
the  security  of  the  public  in  handling  their  circulating  notes, 
and  other  prominent  features  which  distinguished  the  State 

12 


178  ECONOMIC  LEGISLATION  IN  IOWA 

Bank  system  from  that  of  other  states,  -w^th  independent 
charters  and  local  security  for  circulating  notes.  "^^^ 

The  statute  created  a  board  of  ten  commissioners,  named 
from  among  the  leading  citizens  of  the  State,  to  supervise 
the  organization  of  the  bank  and  its  branches.  It  provided 
that  whenever  the  commissioners  had  ascertained,  by  care- 
ful examination,  that  five  or  more  branches  had  been 
formed,  and  that  their  stockholders,  directors,  and  officers 
were  men  of  responsibility  and  integrity,  the  facts  were  to 
be  certified  to  the  Governor.  The  Governor  was  then  to 
announce  that  the  three  directors  named  for  the  State  in 
the  statute,  with  one  director  named  by  each  branch,  consti- 
tuted the  State  Bank  of  Iowa  with  authority  to  exercise  all 
the  powers  and  duties  conferred  upon  it  by  the  Constitution 
and  laws  of  the  State.  This  completed  the  legal  duties  of 
the  board  of  commissioners  and  the  affairs  of  the  bank  were 
then  to  be  placed  in  the  hands  of  the  Board  of  Directors 
consisting  of  three  members  named  by  the  General  Assem- 
bly and  one  member  selected  by  each  of  the  branches.-^^ 

The  State  Bank  proper  was  not  a  bank  of  issue  or  deposit. 
It  transacted  no  business  except  with  the  branches.  It  was 
to  keep  an  office  at  Iowa  City,  where  the  books  and  accounts 
of  every  description,  which  were  to  be  open  to  inspection  by 
the  General  Assembly,  were  to  be  kept.  The  parent  bank 
was  to  have  general  supervision  over  the  several  branches ; 
it  was  to  furnish  them  with  notes  for  circulation,  examine 
into  their  affairs,  and  publish  monthly  statements  of  the 
condition  of  the  several  branches. 

The  branches  were  required  to  deposit  with  the  State 
Bank  certain  designated  stocks  as  security  for  the  notes 
issued  to  them  for  circulation.  Such  deposits  were  to 
amount  to  twelve  and  one-half  per  cent  of  the  notes  received 
and  were  to  be  kept  as  a  ''Safety  Fund"  for  the  redemption 
of  the  notes  of  circulation  of  any  branch  failing  to  redeem 
its  notes.    The  branches  were  limited  in  their  circulation  to 


BANKING  179 

the  following :  on  the  first  hundred  thousand  dollars  or  any 
lesser  amount  of  capital,  twice  the  amount  of  such  capital ; 
on  the  second  hundred  thousand  dollars,  or  part  of  that 
amount,  one  and  three-fourths  of  the  amount  of  capital 
over  one  hundred  thousand  dollars;  and  on  the  third  hun- 
dred thousand  dollars  or  part  of  that  amount,  one  and  one- 
half  times  the  amount  of  capital  above  two  hundred 
thousand  dollars. 

Ten  per  cent  of  the  notes  issued  could  be  for  one  dollar 
each,  and  two  and  three  dollar  notes  were  authorized.  Not 
more  than  twenty-five  per  cent  could  be  in  notes  of  all  de- 
nominations under  five  dollars,  nor  more  than  fifty  per  cent 
in  notes  of  all  denominations  under  ten  dollars. 

Not  more  than  thirty  branches  could  be  organized.  The 
minimum  capital  for  a  branch  was  $50,000,  and  the  maxi- 
mum was  $300,000.  A  branch  could  not  be  established  in  a 
town  of  less  than  five  hundred  inhabitants ;  nor  could  more 
than  one  branch  be  located  in  the  same  town  or  city. 

Branches  refusing  to  redeem  their  notes  in  specie  were  to 
be  declared  insolvent  and  taken  in  charge  by  the  State 
Bank,  and  the  solvent  branches  were  required  to  make  up 
the  losses  of  the  insolvent  branch.  Provision  was  made  for 
the  appointment  of  receivers  for  insolvent  branches,  who 
were  to  convert  the  assets  of  the  insolvent  bank  into  money 
and  apply  the  money  in  the  following  manner:  first,  re- 
imburse all  the  moneys  received  from  the  other  branches; 
second,  reimburse  the  safety  fund ;  third,  pay  other  liabili- 
ties of  the  insolvent  branch ;  and  fourth,  divide  the  residue 
among  the  stockholders  of  the  insolvent  branch. 

Five  or  more  persons  could  associate  for  the  purpose  of 
forming  a  branch  bank.  They  were  required  to  make  appli- 
cation to  the  Board  of  Directors  of  the  State  Bank  certify- 
ing the  name  and  location ;  the  amount  of  capital  stock  and 
the  number  of  shares;  the  name,  address,  and  number  of 
shares  held  by  each  stockholder;  and  the  time  when  the 


180  ECONOMIC  LEGISLATION  IN  IOWA 

company  was  formed.  This  certificate  was  required  to  be 
recorded  in  the  county  in  which  the  branch  was  located  and 
a  copy  filed  with  the  Secretary  of  State.  Upon  being  ad- 
mitted as  a  branch  the  association  agreed  to  comply  with 
all  the  restrictions  of  the  statute. 

At  least  fifty  per  cent  of  the  capital  stock  of  each  branch 
had  to  be  paid  up  in  gold  and  silver  coin,  and  the  remainder 
was  required  in  installments  of  at  least  ten  per  cent  of  the 
whole  amount  every  four  months  until  all  the  capital  stock 
was  paid  up.  These  installments  were  also  to  be  paid  in 
specie.  Each  share  of  stock  carried  with  it  one  vote  in  the 
management  of  the  business,  and  voting  by  proxy  was  per- 
mitted. 

Branch  banks  were  to  be  managed  by  a  board  of  directors 
of  not  less  than  five  nor  more  than  nine  members,  who  were 
required  to  be  citizens  of  the  United  States  and  residents  of 
the  State.  The  amount  of  stock  which  could  be  held  by 
stockholders  and  directors  was  limited.  Charters  of  branch 
banks  were  to  be  of  twenty  years  duration,  and  the  branches 
had  general  corporate  powers. 

Each  of  the  branches  was  authorized  to  transact  a  gen- 
eral banking  business.  They  could  hold  and  convey  such 
real  estate  as  was  necessary  for  the  convenient  transaction 
of  their  business,  but  no  more.  Their  circulation  was  re- 
stricted to  their  own  notes,  they  were  forbidden  to  put  the 
doubtful  notes  of  other  banks  into  circulation,  and  they 
were  required  to  accept  each  other's  notes  at  par.  Each 
branch  was  required  to  maintain  a  specie  reserve  equal  in 
amount  to  one-fourth  of  its  outstanding  circulation  and  an 
additional  and  separate  reserve  of  twenty-five  per  cent  of 
its  current  deposits.  Interest  on  current  deposits  was  pro- 
hibited. 

The  amount  of  indebtedness  which  a  branch  bank  could 
incur  was  limited.  Notes  could  not  be  exchanged  for  capital 
stock,  nor  could  capital  stock  be  withdrawn.     Dividends 


BANKING  181 

could  be  declared  semi-annually,  but  only  from  net  profits. 
Detailed  statements  were  required  from  each  branch  every 
month,  copies  of  which  were  to  be  transmitted  to  the  State 
Bank  and  to  the  State  Auditor.  Such  statements  were  also 
to  be  published  in  the  local  papers.  Interest  and  discount 
were  limited  to  ten. per  cent  and  usury  was  forbidden.  It 
was  not  permissible  for  any  branch  to  allow  one  firm  or 
person  to  become  indebted  to  it  in  a  greater  amount  than 
one-fourth  of  its  authorized  circulation. 

The  violation  of  any  of  the  provisions  of  the  statute  by  a 
branch  served  to  forfeit  its  charter,  and  any  director  par- 
ticipating in  or  assenting  to  such  violation  was  held  liable 
in  his  personal  and  individual  capacity  for  all  damages 
which  the  branch,  stockholders,  or  any  one  else  sustained 
because  of  the  violation.  Provision  was  made  for  the  pun- 
ishment of  dishonest  officials;  and  the  liability  of  stock- 
holders extended  to  a  sum  double  the  amount  of  stock  held 
by  them.  Detailed  directions  were  prescribed  for  the  elec- 
tion of  officers.-^*^ 

The  board  of  commissioners  held  its  first  meeting  at 
Iowa  City  on  July  30, 1858,  when  it  organized  and  adjourned 
to  meet  on  September  15th  to  receive  and  act  upon  applica- 
tions for  branches.  At  the  second  meeting  the  applications 
were  referred  to  committees  for  personal  examination  and 
a,  few  weeks  later  the  commissioners  certified  to  the  Gov- 
ernor that  in  the  following  named  cities  branches  had  been 
legally  organized  and  had  complied  with  the  prescribed 
conditions  of  the  law  and  were  entitled  to  commence  the 
business  of  banking:  Davenport,  Des  Moines,  Dubuque, 
Iowa  City,  Keokuk,  Mount  Pleasant,  Muscatine,  and  Oska- 
loosa.  New  branches  w^ere  later  organized  at  Lyons  City, 
Burlington,  Washington,  Fort  Madison,  McGregor,  Council 
Bluffs,  and  Maquoketa  —  making  a  total  of  fifteen.-^^ 

The  board  of  directors  met  for  the  first  time  at  Iowa 
City  on  October  27,  1858.    Permanent  officers  of  the  board 


182  ECONOMIC  LEGISLATION  IN  IOWA 

were  chosen  on  the  following  day  and  a  carefully  framed 
set  of  by-laws  was  adopted  which  defined  the  powers  and 
duties  of  the  officers  and  of  the  branch  banks.^^^ 

In  1862  the  General  Assembly  authorized  the  acceptance 
of  the  notes  of  the  State  Bank  of  Iowa  for  all  debts,  interest 
payments,  and  taxes.  Two  years  later  the  State  Bank  was 
given  a  monopoly  of  the  issue  of  circulating  notes  in  the 
State.293 

The  State  Bank  conducted  its  business  on  safe  and  con- 
servative lines  during  the  whole  period  of  its  existence. 
There  was  a  general  suspension  of  specie  payment  through- 
out the  country  soon  after  the  opening  of  the  Civil  War  and 
gold  commanded  a  premium.  The  notes  of  the  State  Bank, 
of  which  there  were  over  a  million  dollars  in  circulation, 
were  payable  in  coin,  and  the  suspension  of  specie  payment 
was  prohibited  by  the  State  Constitution.  The  immediate 
return  of  all  their  notes  for  redemption  would  have  serious- 
ly injured  the  banks  and  the  public.  In  this  emergency  the 
board  of  directors  published  a  consolidated  statement  of 
the  branches  showing  their  strength  and  on  February  12, 
1862,  passed  a  resolution  requiring  all  branches  to  receive 
the  newly  issued  United  States  greenbacks  in  payment  for 
all  debts  and  permitting  the  branches  to  redeem  their  notes 
in  such  greenbacks,  as  soon  as  they  should  have  become 
legal  tender,  as  well  as  in  specie.  The  branches  were  or- 
dered to  maintain  their  reserves  against  circulation  and 
urged  to  redeem  their  notes  in  specie  when  they  were  in  the 
hands  of  residents  of  lowa.^^'* 

The  national  banking  system  was  established,  under  the 
law  of  February  25,  1863,  and  put  into  operation  in  1864- 
1865.  Among  its  amendatory  provisions  was  one  which 
levied  a  heavy  tax  upon  the  circulation  of  State  banks,  the 
object  of  which  was  to  drive  out  such  circulation  in  order 
to  create  a  demand  for  that  of  the  national  banks.  The 
State  Bank  of  Iowa  took  decided  action  in  complying  with 


BANKING  183 

the  new  system  and  in  withdrawing  its  own  circulation. 
The  first  steps  toward  closing  up  the  affairs  of  the  bank 
were  taken  at  the  directors'  meeting  in  February,  1865. 
Stringent  measures  were  adopted  to  insure  the  complete 
settlement  by  the  branches  of  all  their  obligations  and  for 
the  redemption  of  their  notes  which  were  rapidly  with- 
drawn. Moreover,  there  was  no  loss  and  little  inconveni- 
ence to  the  public  caused  by  the  withdrawal.  Formal  action 
in  th6  matter  of  the  complete  closing  up  of  the  affairs  of 
the  bank,  was  taken  by  the  directors  at  the  August  meeting 
in  1865 ;  and  the  last  meeting  of  the  board  of  directors  was 
held,  informally,  at  Davenport  on  November  22, 1865.^^^ 

The  State  Bank  of  Iowa  was  organized  and  began  busi- 
ness under  great  difficulties.  The  promoters  of  the  worth- 
less currency  which  was  in  circulation  in  the  State  at  that 
time  offered  all  the  opposition  in  their  power.  The  bank 
and  its  branches,  however,  secured  the  confidence  of  the 
communities  in  which  they  were  located.  Its  circulation 
was  a  decided  improvement  over  that  which  was  current  in 
the  State,  and  its  business  was  conducted  on  a  careful  and 
conservative  basis.  The  system  was  sound,  and  the 
branches  did  a  fairly  successful  business  even  during  the 
war.  They  assumed  the  burden  of  aiding  the  State  govern- 
ment in  protecting  its  credit  and  adjusted  themselves  to 
conditions  in  a  very  successful  manner.  It  is  true  that 
some  of  the  branches  did  adopt  unwise  practices,  but  the 
State  Bank  took  immediate  action  and  no  loss  resulted  to 
the  public  or  to  the  stockholders.  It  would  be  of  interest  to 
treat  of  this  institution  at  greater  length  but  such  treatment 
would  be  out  of  place  in  this  connection.  The  bank  left  be- 
hind it,  as  a  part  of  its  history,  '^a  reputation  for  safety, 
prudence,  reliability,  and  other  business  virtues,  not  ex- 
celled by  any  other  institution  of  its  kind  in  the  whole 
Union.  "296 

Most  of  the  branches  of  the  State  Bank  of  Iowa  were  at 


184  ECONOMIC  LEGISLATION  IN  IOWA 

once  merged  into  national  banks  quietly  and  easily,  with 
little  friction.  On  April  7, 1870,  an  act  was  approved  which 
repealed  the  law  under  which  the  State  Bank  of  Iowa  was 
established  and  directed  the  officers  to  wind  up  the  busi- 
ness, which  had  already  been  done.^^^ 

THE  GENERAL  BANKING  LAW  OF  1858 

In  addition  to  the  law  under  which  the  State  Bank  of 
Iowa  was  organized  the  Seventh  General  Assembly  made 
provision  for  a  system  of  general  banking  under  a  statute 
which  provided  regulations  in  accordance  with  which  banks 
of  discount,  deposit,  and  circulation  could  be  established.^®* 
It  provided  that  any  number  of  persons  should  be  allowed 
to  associate  together  and  incorporate  with  banking  privi- 
leges, and  set  fifty  thousand  dollars  as  the  minimum  of 
capital  stock  which  was  required  to  be  paid  up  in  cash  be- 
fore any  business  could  be  transacted.  Banking  associa- 
tions organized  under  this  law  were  to  have  ordinary 
corporate  powers,  with  a  duration  of  not  more  than  twenty 
years.  They  could  not  be  established  in  towns  having  a 
population  of  less  than  five  hundred.  Such  banks  were 
authorized  to  do  a  general  banking  business,  but  were  re- 
quired to  limit  their  activities,  for  the  most  part,  to  short 
time  loans  on  personal  security.  The  rate  of  interest  was 
limited  to  ten  per  cent.  Shares  were  transferable  and 
shareholders  were  subject  to  double  liability. 

In  order  to  secure  circulation  notes  a  bank  was  required 
to  deposit  securities  of  a  designated  class  with  the  Auditor 
of  State  in  an  amount  greater  by  ten  per  cent  than  the 
amount  of  notes  issued  for  circulation.  Stringent  regula- 
tions were  prescribed  in  all  the  details  relating  to  circula- 
tion, and  suspension  of  specie  payment  was  cause  for  the 
sale  of  the  deposited  securities  for  the  satisfaction  of  the 
liabilities  of  the  association.  Notes  were  required  to  be 
payable  at  the  bank,  and  the  distribution  of  foreign  bank 
notes  by  a  bank  was  prohibited. 


BANKING  185 

Each  bank  was  required  to  maintain  a  specie  reserve  suf- 
ficient to  redeem  its  bills  or  notes  on  demand.  A  specie 
reserve  of  one-fourth  of  the  amount  of  deposits  was  also 
required.  The  payment  of  interest  on  deposits  was  for- 
bidden. The  power  to  purchase  and  hold  real  estate  was 
limited  to  the  amount  necessary  and  convenient  for  the 
accommodation  of  banking  buildings  and  that  which  had  to 
be  taken  to  secure  debts. 

A  certificate  specifying  the  name,  the  place  of  business, 
the  amount  of  capital  stock,  the  names  and  addresses  of 
stockholders  and  the  number  of  shares  held  by  each,  and 
the  date  of  establishment  and  termination  of  the  corpora- 
tion had  to  be  submitted  to  the  Auditor  at  the  time  of 
making  application  for  circulation  notes.  Semi-annual 
statements  giving  in  detail  the  holdings  of  the  capital  stock 
were  required  to  be  posted  in  the  bank  and  filed  with  the 
recorder  of  deeds  in  the  county  in  which  the  bank  was  lo- 
cated. Severe  penalties  were  prescribed  for  the  violation 
of  any  portions  of  the  law. 

Every  bank  incorporated  under  the  provisions  of  the  law 
was  required  to  transmit  quarterly  statements  to  the  Audi- 
tor of  State.  These  statements  were  to  specify :  the  amount 
of  capital  stock,  real  estate,  bills  receivable,  bills  payable, 
circulation  and  liability  of  the  stockholders,  suspended 
debts,  and  deposits.  Any  bank  neglecting  or  refusing  to 
comply  with  this  provision  forfeited  its  charter  and  was 
closed  up. 

Three  bank  commissioners  were  elected  by  the  General 
Assembly  to  have  general  supervision  of  the  banks  organ- 
ized under  the  statute.  They  were  to  make  semi-annual 
examinations  of  the  banks  and  were  given  power  to  exam- 
ine books  and  papers  and  subpoena  witnesses.  The  results 
of  such  examinations  were  to  be  made  public. 

The  statute  is  very  long  and  the  content  has  been  given 
very  briefly.    It  was  clearly  the  intent  of  the  legislature  to 


186  ECONOMIC  LEGISLATION  IN  IOWA 

insure  a  conservative  banking  system.  Indeed,  the  law  was 
so  strict  that  no  banks  appear  to  have  been  established 
under  its  provisions.  In  his  biennial  message  delivered  on 
January  10,  1860,  Governor  Lowe  remarked  that  there  was 
some  agitation  for  a  more  lenient  law,  but  he  went  on  to  say 
that  **It  is  the  want  of  these  stringent  provisions  in  the 
Free  Banking  systems  of  Illinois  and  Wisconsin  that  have 
flooded  those  States  and  Iowa  with  their  irredeemable  pa- 
per. It  is  infinitely  better  for  the  people  of  this  State  to 
have  no  free  or  State  banks,  if  their  paper  cannot  be  re- 
deemed on  demand  in  specie.  "^^^ 

The  members  of  the  Eighth  General  Assembly  felt,  how- 
ever, that  there  should  be  a  more  liberal  law.  The  argu- 
ment was  that  the  general  banking  law  was  too  rigid  and 
was  keeping  capital  out  of  the  State.  Accordingly,  an 
amendment  to  the  law  was  passed  by  both  houses  of  the 
legislature  which  reduced  the  required  minimum  capitaliza- 
tion to  twenty-five  thousand  dollars;  permitted  the  estab- 
lishment of  banks  in  towns  of  less  than  five  hundred 
inhabitants ;  and  abolished  the  office  of  bank  commissioners. 
This  amendment  appeared  to  be  dangerous  and  was  vetoed 
by  Governor  Kirkwood,  who,  as  a  State  Senator,  had  helped 
to  enact  the  rigid  law.  It  then  failed  of  passage  over  the 
Governor's  veto.^^*^  It  appear  that  no  banks  were  estab- 
lished under  the  general  banking  law  and  it  was  repealed 
on  March  4,  ISTO.^o^ 

STATE  BANKS 

The  national  banking  act  of  1863,  by  an  amendment  which 
went  into  effect  on  August  1,  1866,  taxed  the  circulation  of 
State  banks  out  of  existence:  the  branches  of  the  State 
Bank  of  Iowa  either  reorganized  as  national  banks  or  dis- 
continued business.  From  this  date  until  1873  complete 
data  relative  to  banks  in  Iowa  is  not  available;  indeed,  in- 
formation of  any  sort  is  scarce.    It  is  known  that  several 


BANKING  187 

banks  were  organized  under  the  general  incorporation  laws 
of  the  State,  but  it  has  not  been  possible  to  determine  the 
exact  number.  The  laws  at  that  time  permitted  corpora- 
tions for  pecuniary  profit  to  file  their  articles  with  the 
county  recorders,  but  did  not  require  notice  to  be  given  to 
any  State  official. 

In  1870  an  amendment  required  all  such  corporations  to 
file  their  articles  with  the  Secretary  of  State  within  three 
months.  It  appears  that  this  requirement  was  not  fully 
complied  with,  since  several  associations  had  difficulty  in 
securing  the  appointment  of  receivers  by  State  authorities 
because  the  State  Auditor  refused  to  recognize  any  organ- 
ization as  a  bank  that  had  not  complied  with  the  law.  The 
complete  records  were  scattered  and  they  have  not  yet  been 
assembled.  The  records  in  the  office  of  the  Secretary  of 
State  indicate  that  five  banks  were  incorporated  in  1870, 
nine  in  1871,  ten  in  1872,  and  twenty  in  1873  —  a  total  of 
forty-eight  before  1874.  The  State  Auditor  reports  only 
twenty-three  in  1873,  but  in  1875  he  reports  nineteen  sav- 
ings banks  and  twenty- three  State  banks.^"^ 

The  first  law  for  the  regulation  of  banks  in  the  State  ap- 
pears in  the  Code  of  1873,  by  the  provisions  of  which  banks, 
both  savings  and  State,  were  required  to  make  quarterly 
statements  to  the  State  Auditor  specifying  the  amount  of 
capital  stock  actually  paid  in ;  the  amount  of  debts  of  every 
kind,  other  than  those  owing  to  regular  depositors;  the 
total  amount  due  depositors;  the  amount  of  deposits  with 
other  solvent  banks  or  bankers;  the  amount  of  gold  and 
silver  coin  and  bullion  on  hand;  the  amount  of  bills  of 
solvent  specie-paying  banks  on  hand;  the  amount  of  dis- 
counts and  other  evidences  of  debt  owned  by  the  bank  and 
designated  as  good,  doubtful,  and  in  judgment;  the  value 
of  all  real  or  personal  property  held  by  the  bank;  the 
amount  of  undivided  profits,  if  any;  and  the  total  amount 
of  all  liabilities  to  the  bank  from  the  directors. 


188  ECONOMIC  LEGISLATION  IN  IOWA 

The  Auditor  was  authorized  to  require  additional  reports 
as  often  as  four  times  a  year  and  to  make  personal  exam- 
ination of  any  bank  if  at  any  time  the  public  interest  seemed 
to  warrant  it.  In  case  any  bank  was  found  to  be  unsafe, 
provision  was  made  for  the  appointment  of  a  receiver  to 
close  up  the  affairs  of  the  institution.  Depositors  were  in 
such  cases  to  be  given  preference  in  the  payment  of  cred- 
itors. Failure  on  the  part  of  any  bank  to  make  the  required 
report  subjected  the  officers  whose  duty  it  was  to  make 
such  reports  to  fine  or  imprisonment  or  both.  These  pro- 
visions were  not  to  be  enforced  against  existing  incorpo- 
rated banks  in  case  such  banks  filed  satisfactory  sworn 
statements  with  the  Auditor  prior  to  a  designated  date. 

The  law  required  banking  associations  to  have  a  paid-up 
capital  of  fifty  thousand  dollars  —  except  that  banks  might 
be  organized  in  towns  or  cities  of  less  than  three  thousand 
population  with  a  paid-up  capital  of  not  less  than  twenty- 
five  thousand  dollars. ^*^^ 

These  provisions  of  the  Code  of  1873  still  remain  the 
basis  for  the  regulation  of  State  banks  in  Iowa.  In  1880 
banking  associations  of  every  character  were  prohibited 
from  receiving  deposits  when  insolvent.  Severe  penalties 
were  prescribed  for  violation  of  the  law,  and  stockholders 
in  banking  associations  were  declared  to  be  subject  to  dou- 
ble liability. ^*^^  An  act  passed  by  the  Twenty-first  General 
Assembly  in  1886  defines  State  banks  in  the  following 
terms:  *'all  associations  hereafter  organized  under  the  gen- 
eral incorporation  laws  of  this  state,  for  transacting  a  bank- 
ing business,  buying,  or  selling  exchange,  receiving  deposits, 
discounting  notes  etc. ;  other  than  savings  banks,  shall  have 
the  word  'state'  incorporated  in  and  made  a  part  of  the 
name  of  such  corporation,  and  no  such  corporation  shall  be 
authorized  to  transact  business,  unless  the  provisions  of 
this  act  have  been  complied  with."  All  incorporated  bank- 
ing associations,  except  savings  banks,  in  existence  previous 


BANKING  189 

to  the  enactment  of  this  law  were  required  to  amend  their 
articles  of  incorporation  so  as  to  comply  with  the  change. 
Unincorporated  banking  concerns  were  forbidden  to  use  the 
word  ''State"  in  their  names.^^^ 

Provision  was  made  in  1890  for  the  appointment,  by  the 
Auditor  of  State,  of  one  or  more  State  Bank  Examiners. 
The  banks  examined  were  required  to  pay  the  expense  of 
making  the  examinations,  in  addition  to  paying  examining 
fees,  graduated  in  amount  from  fifteen  to  thirty  dollars  de- 
pending upon  the  amount  of  capital  stock.  The  Twenty- 
fifth  General  Assembly  provided  that  in  case  the  capital  of 
any  incorporated  banking  association  became  impaired  as- 
sessments might  be  levied  upon  the  stockholders  in  any  sum 
necessary  to  make  the  capital  stock  good.  Directors  failing 
or  neglecting  to  require  such  an  assessment  when  needed 
became  personally  liable.  Moreover,  the  officers  of  banking 
associations  were  required  to  give  the  same  security  as 
other  persons  when  borrowing  the  funds  of  a  bank.  The 
liabilities  owing  to  the  bank  from  any  one  person  or  firm 
were  limited  to  twenty  per  cent  of  the  paid-up  capital  of  the 
bank.  The  directors  of  each  bank  were  also  required  to 
appoint  an  examining  committee,  from  their  own  number, 
to  examine  the  conditions  of  the  bank  at  least  every  three 
months  and  to  report  the  results  to  the  board  of  directors.^^^ 

The  Code  of  1897  added  a  few  important  provisions  to 
the  law  regulating  State  banks.  It  provided  that  no  cor- 
poration might  engage  in  the  business  of  banking  unless  it 
became  subject  to  and  organized  under  the  banking  laws  of 
the  State.  It  required  every  State  bank  to  file  its  articles  of 
incorporation  with  the  county  recorder  in  the  county  in 
which  the  principal  place  of  business  was  located  and  with 
the  Secretary  of  State.  Such  articles  were  required  to  con- 
tain the  following  information :  the  object  and  name  of  the 
corporation;  the  principal  place  of  business;  the  time  of 
commencement  and  termination  of  the  corporation,  which 


190  ECONOMIC  LEGISLATION  IN  IOWA 

is  limited  to  twenty  years;  the  amount  of  capital  stock 
authorized  and  the  conditions  of  payment ;  the  officers  who 
are  to  conduct  the  business  and  when  elected;  the  highest 
amount  of  indebtedness  to  which  the  corporation  may  sub- 
ject itself;  whether  private  property  shall  be  liable  for  cor- 
porate debts  in  addition  to  the  liability  fixed  by  law;  the 
name  and  address  of  each  officer;  any  other  provisions 
which  may  be  adopted  by  the  corporations,  which  must  be 
in  accordance  with  law. 

Under  the  provisions  of  the  Code  of  1897  the  capital  stock 
of  State  banks  must  be  divided  into  shares  of  one  hundred 
dollars  each  and  issued  only  upon  the  full  payment  of  their 
value.  The  business  must  be  managed  by  a  board  of  not 
less  than  five  directors,  all  of  whom  must  be  stockholders. 
The  number  of  shares  required  to  be  owned  by  the  directors 
depended  upon  the  capitalization  of  the  bank.  Banks  were 
required  to  maintain  a  reserve  of  not  less  than  ten  per  cent 
of  their  total  deposits  if  located  in  a  town  or  city  having  a 
population  of  less  than  three  thousand ;  in  larger  cities  and 
towns  a  reserve  of  not  less  than  fifteen  per  cent  of  their 
total  deposits  was  required,  three-fourths  of  which  could  be 
deposited,  subject  to  call,  with  other  national  or  State  banks. 
In  the  Code  of  1897,  moreover,  the  bank  laws  of  the  State 
are  collected  and  arranged  in  order.^*^^ 

Many  changes  have  been  made  in  the  banking  laws  since 
1897.  The  limit  of  liabilities  was  raised  in  1902,  when  banks 
were  permitted  to  loan  an  amount  not  to  exceed  one-half  of 
their  capital  stock  to  any  one  person  or  company  on  notes 
or  bonds  secured  by  mortgages  or  deeds  of  trust  upon  un- 
encumbered farm  land  in  Iowa,  worth  at  least  twice  the 
amount  loaned  thereon. ^*^^ 

The  Thirtieth  General  Assembly  in  1904  empowered  the 
State  Auditor  to  appoint  four  Bank  Examiners  who  were 
to  receive  regular  salaries ;  and  banks  were  required  to  pay 
annual  fees  to  the  Auditor  instead  of  paying  examining 


BANKING  191 

fees  to  the  Bank  Examiners.  The  law  further  provided 
that  no  Bank  Examiner  should  be  assigned  to  examine  a 
bank  in  any  county  in  which  he  was  interested  in  banking. 
Definite  dates  for  the  making  of  two  annual  examinations 
were  fixed  in  1906;  and  the  provisions  of  the  examining 
law  were  made  applicable  to  loan  and  trust  companies.  In 
1909  and  again  in  1915  the  number  of  Bank  Examiners  was 
increased  and  the  annual  fees  raised.  The  Auditor  could 
formerly  and  the  Superintendent  of  Banking  may  now  ap- 
point not  less  than  six  nor  more  than  eight  examiners  and 
new  appointees  must  have  had  not  less  than  three  years 
experience  in  the  business  of  banking  or  as  bank  examiners 
in  order  to  qualify  for  the  office.  Fees  are  required  from 
loan  and  trust  companies  the  same  as  from  banks.  They 
are  graduated,  in  proportion  to  the  amount  of  capital,  from 
fifteen  dollars  for  concerns  having  a  capital  of  twenty-five 
thousand  dollars  to  one  hundred  and  fifty  dollars  for  con- 
cerns having  a  capital  in  excess  of  two  hundred  thousand 
dollars.  The  State  Auditor  was  authorized  in  1911  to  re- 
quire an  examination  to  be  made  at  any  time,  and  calls  for 
statements  may  be  made  as  often  as  five  times  a  year.  The 
statements  must  show  the  condition  of  the  bank  on  desig- 
nated past  days  and  be  published  in  the  regular  issue  of 
some  paper  in  the  city,  town,  or  county  in  which  the  bank 
is  located.^*'^ 

The  Thirty-first  General  Assembly  prescribed  penalties 
for  the  misuse  of  funds  by  the  officers  or  employees  of 
banks.  At  the  same  time  provision  was  made  for  the  exten- 
sion of  bank  charters.  The  purposes  for  which  banks  might 
contract  indebtedness  were  re-defined  in  1907,  and  a  change 
was  made  in  the  manner  of  regulating  loans  to  officers  and 
directors.  Such  loans  may  now  be  made  only  by  a  resolu- 
tion of  the  board  of  directors  in  the  absence  of  the  applicant 
and  upon  the  same  security  that  is  required  of  other  per- 
sons.   Provision  was  made  in  1909  for  the  dissolution  of 


192  ECONOMIC  LEGISLATION  IN  IOWA 

State  banks  by  an  affirmative  vote  of  the  share-holders  hold- 
ing three-fourths  of  the  capital  stock,  and  banks  were  de- 
clared to  be  not  liable  to  a  depositor  for  the  payment  of  a 
forged  or  raised  check  unless  notified  by  the  depositor 
within  six  months  after  the  return  of  the  voucher.  In  1913 
both  State  and  savings  banks  were  authorized  to  deposit 
securities  with  the  Treasurer  of  the  United  States  to  secure 
postal  savings  funds  deposited  with  them.  Enlarged  trust 
powers  were  conferred  in  1913  and  1915,  and  banks  were 
authorized  to  become  members  of  the  Federal  Reserve  Sys- 
tem upon  an  affirmative  vote  of  the  shareholders  holding  a 
majority  of  the  capital  stock.^^^ 

SAVINGS  BANKS 

In  1874  the  Fifteenth  General  Assembly  made  provision 
for  the  savings  bank  system  of  Iowa.  Before  this  time  asso- 
ciations transacting  a  savings  bank  business  were  incor- 
porated under  the  general  incorporation  laws,  which  had 
no  special  reference  to  savings  banks,  and  under  such  con- 
ditions they  were  practically  unrestricted. 

This  law  of  1874  was  entitled  ''An  Act  to  Provide  for  the 
Organization  and  Management  of  Savings  Banks".  It  pro- 
vided that  a  savings  bank  might  be  organized  by  not  less 
than  five  persons,  with  a  paid-up  capital  of  $10,000  in  cities 
or  towns  of  ten  thousand  or  less,  or  with  a  paid-up  capital 
of  $50,000  in  cities  of  more  than  ten  thousand.  It  prohib- 
ited the  organization  of  savings  banks  under  the  general 
incorporation  laws  and  required  existing  savings  banks  to 
reorganize  under  the  new  provisions.  Certified  articles 
were  required  to  be  filed  in  the  county  where  the  association 
was  located  and  with  the  Secretary  of  State.  The  content 
of  such  articles  was  prescribed  and  was  similar  to  that 
which  was  later  required  of  State  banks.  Savings  bank 
charters  were  to  endure  for  a  period  of  fifty  years  and  the 
associations  were  given  ordinary  corporate  powers. 


BANKING  193 

The  aggregate  amount  of  deposits  which  any  savings 
bank  might  receive  was  limited  to  ten  times  the  amount  of 
its  paid-up  capital.  The  capital  was  to  serve  as  a  guarantee 
fund  for  the  security  of  deposits  and  was  to  be  invested  in 
safe  and  available  securities.  Provision  was  made  for  the 
repayment  of  deposits,  but  it  was  made  lawful  for  an  asso- 
ciation to  require  sixty  days  notice  of  the  withdrawal  of 
deposits. 

Savings  banks  were  to  invest  their  funds  in  the  following 
securities:  stocks,  bonds,  or  interest-bearing  notes  of  the 
United  States ;  stocks,  bonds,  or  evidences  of  debt  bearing 
interest  of  this  State;  municipal  or  school  bonds,  not  ex- 
ceeding twenty-five  per  cent  of  the  assets  of  any  bank;  and 
mortgages  or  debts  on  unencumbered  real  estate  in  Iowa, 
worth  at  least  twice  the  amount  loaned.  Such  banks  were 
permitted  to  discount,  purchase,  sell,  and  make  loans  upon 
commercial  paper,  notes,  bills  of  exchange,  drafts,  or  other 
personal  or  public  security ;  but  they  were  not  to  purchase, 
hold,  or  make  loans  upon  the  shares  of  their  own  capital 
stock. 

The  law  allowed  a  bank  to  own  enough  real  estate  for  a 
location  for  its  business  and  also  such  property  as  it  might 
acquire  by  foreclosure  of  mortgage,  providing  such  prop- 
erty be  sold  within  ten  years.  The  rate  of  interest  to  be 
paid  was  left  to  the  discretion  of  the  trustees,  and  the  prof- 
its, after  the  payment  of  interest  and  expenses,  went  to  the 
stockholders.  Double  liability  of  shareholders  was  pre- 
scribed, and  the  directors  of  the  bank,  as  such,  were  to 
receive  no  compensation.  Loans  to  officers  and  directors 
were  required  to  be  secured  in  the  same  manner  as  loans  to 
any  other  parties  and  could  be  made  only  by  a  vote  of  the 
board  in  the  absence  of  the  applicant.  Loans  to  any  indi- 
vidual or  firm  were  limited  to  twenty  per  cent  of  the  capital 
stock. 

The  use  of  the  term  "savings  bank"  in  their  title  by 

13 


194  ECONOMIC  LEGISLATION  IN  IOWA 

other  banking  institutions  was  prohibited.  Every  savings 
bank  was  required  to  make  a  quarterly  report  to  the  Audi- 
tor of  State,  giving  in  detail  a  statement  of  its  condition 
upon  a  given  day.  This  statement  was  to  be  made  under 
oath  of  the  officers,  and  was  also  required  to  be  published  in 
the  county  where  the  bank  was  located.  False  statements 
by  officers  or  agents  were  declared  to  constitute  a  felony 
and  were  made  punishable  as  such.  The  statements  were 
required  to  specify  the  capital  stock,  the  debts  of  every 
kind,  the  deposits,  the  amount  of  deposits  with  other  banks, 
the  amount  of  .gold  and  silver  on  hand,  the  amount  of  dis- 
counts (good,  doubtful,  or  in  judgment),  the  amount  of  per- 
sonal property,  the  undivided  profits,  and  the  total  liabili- 
ties of  the  directors. 

The  Auditor  of  State  was  directed  to  report  the  condition 
of  all  savings  banks  at  each  session  of  the  General  Assem- 
bly. He  could  require  additional  statements  from  the  bank 
and  could  make  examinations  at  any  time.  In  case  a  bank 
was  found  to  be  unsafe,  provision  was  made  for  the  closing 
of  its  business. 

The  law  provided  for  increasing  the  capital  stock  by  a 
vote  of  two-thirds  of  all  the  shares  of  the  existing  capital, 
each  share  having  one  vote.  It  also  enabled  institutions 
which  had  been  previously  organized  under  the  general 
corporation  law  to  reorganize  under  the  provisions  of  the 
new  act.^^^ 

This  law  was  severely  criticised  as  being  lax  in  its  pro- 
visions and  as  being  drawn  for  the  benefit  of  borrowers  and 
not  with  the  idea  of  the  absolute  security  of  depositors  in 
view.  The  required  statements  were  described  as  meager 
and  unsatisfactory  and  the  limitation  upon  the  amount  to 
be  loaned  to  one  individual  or  firm  a  farce.^'^-  As  a  matter 
of  fact  the  growth  of  the  savings  bank  business  in  Iowa  has 
been  rapid.  Little  modification  has  been  made  in  the  laws 
governing  such  banks,  and  most  of  the  changes  that  have 
been  made  apply  to  both  State  and  savings  banks. 


BANKING  195 

The  provisions  regulating  the  examination  of  savings 
banks  by  State  examiners  are  the  same  as  for  State  banks. 
That  is,  the  State  Auditor  was  authorized  to  appoint  one  or 
more  examiners  in  1890  and  the  banks  paid  the  expenses 
connected  with  examinations  and  paid  fees  to  the  exam- 
iners. Changes  were  made  from  time  to  time  until  the 
Superintendent  of  Banking  may  now  appoint  not  less  than 
six  nor  more  than  eight  examiners  who  receive  regular  sal- 
aries from  the  State.  These  examiners  must  have  had  at 
least  three  years'  experience  in  practical  bank  work  or  as 
bank  examiners  in  order  to  qualify  for  the  position.  Banks 
and  loan  and  trust  companies  are  required  to  pay  annual 
fees  to  the  State  banking  department,  which  fees  are  gradu- 
ated in  proportion  to  the  capitalization  of  the  banks.  The 
Auditor  formerly  could  and  the  Superintendent  of  Banking 
may  now  require  an  examination  to  be  made  at  any  time 
and  may  call  for  statements  as  often  as  five  times  in  a  year. 
Such  statements  must  show  the  condition  of  the  bank  on 
designated  past  days  and  must  be  published  in  the  regular 
issue  of  some  paper  in  the  city,  town,  or  county  in  which 
the  bank  is  located.^^^ 

In  order  to  provide  for  the  better  security  of  depositors 
in  savings  banks  the  Twenty-fifth  General  Assembly  author- 
ized the  board  of  directors  of  any  such  bank,  the  capital 
stock  of  which  had  become  impaired,  to  levy  an  assessment 
upon  the  shareholders  pro  rata  for  the  amount  of  stock 
held  by  them  and  at  such  rate  as  was  necessary  to  meet  the 
deficiency.  Directors  failing  or  refusing  to  levy  such  an 
assessment  when  the  conditions  required  it  were  made  indi- 
vidually liable.^^* 

The  Code  of  1897  rearranged  the  law  and  added  a  reserve 
requirement.  Savings  banks  doing  a  commercial  business 
in  towns  or  cities  having  a  population  of  less  than  three 
thousand  are  required  to  keep  a  cash  reserve  equal  to  fifteen 
per  cent  of  their  sight  and  demand  deposits,  and  eight  per 


196  ECONOMIC  LEGISLATION  IN  IOWA 

cent  of  their  savings  deposits.  Such  banks  located  in  cities 
of  more  than  three  thousand  inhabitants  are  required  to 
maintain  a  cash  reserve  equal  to  twenty  per  cent  of  their 
sight  and  demand  deposits,  and  eight  per  cent  of  their  sav- 
ings deposits  and  time  securities.  Banks  doing  an  exclusive 
savings  bank  business  are  required  to  keep  a  cash  reserve 
equal  to  eight  per  cent  of  their  deposits.  Eighty-five  per 
cent  of  such  reserve  may  be  kept  on  deposit,  subject  to  call, 
with  other  banks.^^^ 

The  Twenty-eighth  General  Assembly  authorized  savings 
banks  to  build  up  a  surplus  fund  to  be  maintained  as  such 
and  invested  in  the  same  manner  as  the  capital  of  the  bank 
was  invested ;  and  this  surplus  was  to  be  included  in  deter- 
mining the  amount  of  deposits  a  bank  could  receive.  Two 
years  later  savings  banks  were  authorized  to  receive  on  de- 
posit money  equal  to  twenty,  instead  of  ten,  times  the  ag- 
gregate amount  of  its  paid-up  capital  and  surplus. ^^® 

The  provisions  regulating  the  limit  of  the  liability  of 
banks  and  those  relative  to  the  investment  of  funds  have 
been  made  more  inclusive.  Some  slight  amendments  and 
additions  have  been  made  to  the  law  relative  to  the  action 
of  directors,  loans  to  officers,  the  misuse  of  funds,  and  the 
notice  of  incorporation.  Savings  banks  may  also,  when  so 
authorized  by  their  articles  of  incorporation,  transact  a 
trust  business,  and  they  may  reorganize  and  become  mem- 
bers of  the  Federal  Reserve  System.^" 

LOAN  AND  TRUST  COMPANIES 

Loan  and  trust  companies  have  not  received  much  legis- 
lative attention  in  Iowa;  but  it  appears  that  a  certain 
amount  of  loan  and  trust  business  was  transacted  for  some 
time  without  special  regulation.  The  first  important  refer- 
ence to  loan  and  trust  companies  in  the  statutes  of  Iowa 
appears  in  section  1889  of  the  Code  of  1897,  which  prohib- 
ited the  transaction  of  banking  business  by  corporations, 


BANKING  197 

except  as  authorized  by  the  banking  laws,  *  *  except  that  loan 
and  trust  companies  may  receive  time  deposits  and  issue 
drafts  on  their  depositaries,  but  such  companies  shall  be 
subject  to  examination,  regulation  and  control  by  the  audi- 
tor of  state,  like  savings  and  state  banks,  and  their  stock- 
holders shall  be  liable  to  the  creditors  of  such  companies  as 
provided  in  section  eighteen  hundred  and  eighty-two  of  this 
chapter  for  stockholders  in  savings  and  state  banks."  A 
violation  of  this  provision  was  sufficient  cause  for  the  for- 
feiture of  the  charter  of  the  association.^^^ 

The  Thirtieth  General  Assembly,  in  1904,  required  loan 
and  trust  companies  to  have  a  fully  paid-up  capital  of  not 
less  than  the  amount  of  capital  of  savings  banks  —  that  is, 
not  less  than  $10,000  in  cities  and  towns  having  a  popula- 
tion of  less  than  ten  thousand,  nor  less  than  $50,000  in  cities 
having  a  greater  population.  All  the  laws  relative  to  bank 
examiners  and  examinations  and  annual  fees  required  from 
banking  associations  were  made  applicable  to  loan  and  trust 
companies  in  1906.^^^ 

The  law  regulating  loan  and  trust  companies  remained 
incomplete  and  was  very  unsatisfactory.  One  indication  of 
the  dissatisfaction  with  the  law  was  shown  in  1907,  when 
the  legislative  committee  of  the  Iowa  Bankers'  Association 
favored  the  enactment  of  a  law  ''for  the  proper  and  ade- 
quate regulation,  control  and  operation  of  trust  companies, 
and  to  confer  upon  said  trust  companies  and  banks  the  pow- 
ers ordinarily  exercised  by  trust  companies  in  other  states 
including  the  right  to  administer  estates  and  execute 
trusts.  "^^*^  Among  the  powers  ordinarily  exercised  by 
trust  companies  are  those  of  trustee,  executor,  administra- 
tor, guardian,  committee,  receiver,  assignee,  transfer  agent, 
registrar,  investment  agent,  fiscal  agent,  promoter,  and 
underwriter.  Moreover,  they  ordinarily  do  a  guarantee, 
safe  deposit,  and  general  banking  business. 

Legislation  on  this  subject  was  slow  in  coming,  and  it  was 


198  ECONOMIC  LEGISLATION  IN  IOWA 

not  until  1913  that  the  General  Assembly  passed  a  more 
comprehensive  law  entitled  "An  Act  to  confer  additional 
powers  upon  trust  companies,  state  and  savings  banks  and 
to  prescribe  the  conditions  under  which  they  may  transact 
business."  This  long  and  detailed  act  of  eleven  sections 
grants  additional  powers  to  savings  banks,  State  banks,  and 
trust  companies,  the  most  important  of  which  is  the  right  to 
act  in  a  fiduciary  capacity  in  the  same  manner  as  a  natural 
person,  except  as  to  the  guardianship  of  persons. 

The  law  declares  that  the  following  features  of  the  sav- 
ings bank  law  shall  apply  to  loan  and  trust  companies :  the 
renewal  of  corporate  existence,  the  formation  and  organ- 
ization, the  articles  of  incorporation,  the  payment  of  cap- 
ital, the  management  of  the  business,  the  qualifications  of 
the  directors,  the  meetings  of  stockholders,  the  deposits,  the 
shares,  the  deposits  by  executors  and  minors,  the  increasing 
of  the  capital  stock,  the  dissolution  of  the  corporation,  the 
reorganization  of  the  bank,  and  the  reserve  requirements. 

The  following  regulatory  provisions  which  were  appli- 
cable to  both  State  and  savings  banks  and  all  the  amend- 
ments thereto  were  also  made  applicable  to  loan  and  trust 
companies :  the  misnomer  clause,  the  pay  of  and  loans  to 
officers,  the  limit  of  liabilities,  examinations  and  special  re- 
ports, quarterly  statements,  proceedings  against  the  com- 
pany, receivers,  assignments  and  their  enforcement,  the 
liability  of  directors  and  of  shareholders,  fraudulent  busi- 
ness and  the  penalties  therefor,  and  statements  of  business 
and  conditions.  The  law  requires  some  additional  informa- 
tion to  be  included  in  the  quarterly  statements  showing  a 
list  and  description  of  the  trusts  held,  the  source  of  ap- 
pointment, and  the  amount  of  real  and  personal  estate  so 
held.  The  law  places  banks  and  loan  and  trust  companies 
in  nearly  the  same  position ;  indeed,  it  appears  that  the  trust 
company  in  this  State  is  simply  a  bank  which  has  the  power 
to  act  as  trustee,  administrator,  guardian,  or  executor.^^^ 


BANKING  199 

In  1915  the  law  was  amended  so  as  to  permit  national 
banks  to  exercise  the  same  powers  and  perform  the  same 
duties  as  were  previously  conferred  upon  trust  companies. 
Provision  was  also  made  to  allow  any  State  or  savings  bank 
or  trust  company  to  become  a  member  of  the  Federal  Re- 
serve System.^22 

PRIVATE  BANKS 

The  legislative  opposition  to  banks  during  the  Territorial 
and  early  State  period  was  conducive  to  the  growth  of  pri- 
vate banks.  The  wild  cat  banking  which  was  so  common 
made  the  pioneers  wary,  and  the  Constitution  of  1846,  under 
which  the  State  of  Iowa  was  admitted  into  the  Union,  pro- 
hibited the  legalization  of  banking  altogether.  Indeed,  no 
legal  relief  was  had  until  1858.  During  this  period  the 
country  was  developing  rapidly  and  there  was  a  growing 
demand  for  a  reliable  medium  of  exchange  and  for  general 
banking  facilities. 

Keen  business  men  were  quick  to  take  advantage  of  this 
demand  and  the  business  of  banking  was  taken  up  as  a  side 
line  with  other  business.  In  many  cases  the  banking  busi- 
ness became  more  important  than  the  other  activities  of  the 
men  in  charge;  and  so  they  came  to  give  their  entire  time 
and  energy  to  that  branch  of  their  business.  This  branch 
of  banking  has  fluctuated  from  year  to  year  with  a  tendency 
in  very  recent  years  to  decline.  Definite  information  rela- 
tive to  the  number  and  the  amount  of  business  done  by  pri- 
vate banks  is  not  available.  The  State  legislature  has 
attempted  from  time  to  time  to  bring  this  class  of  banks 
under  State  control,  but  without  much  success.  The  only 
legislation  directly  affecting  them  is  the  negative  provi- 
sions of  the  State  and  savings  bank  laws  which  prohibit 
unauthorized  banking  associations  from  incorporating 
either  the  word  State  or  savings  in  their  names. 


200  ECONOMIC  LEGISLATION  IN  IOWA 

THE  STATE  BANKING  DEPARTMENT 

In  1917  a  State  Department  of  Banking  was  established 
and  all  the  business  connected  with  the  supervision  of  bank- 
ing was  transferred  from  the  State  Auditor's  office  to  that 
of  the  newly  created  Superintendent  of  Banking.  The  act 
simply  provides  for  the  establishment  and  for  the  appoint- 
ment, removal,  salary,  and  regulations  of  the  Superintend- 
ent; for  quarters  and  examiners  and  clerks  and  declares 
that  the  Auditor  shall  be  relieved  of  all  duties  in  connection 
with  the  banking  department  of  the  State.  This  action  has 
long  been  needed  on  account  of  the  many  duties  of  the 
Auditor,  and  it  is  hoped  that  the  relief  from  the  former  con- 
gestion provided  in  the  separate  department  will  make 
toward  a  more  efficient  administration  of  the  banking  laws 
of  the  State.323 

TAXATION  OF  BANKS  AND  TRUST  COMPANIES  324 

It  will  be  remembered  that  the  Constitution  of  1846  pro- 
hibited banking  in  the  State  and  that  the  Code  of  1851  con- 
tains stringent  statutory  prohibitions.  Moreover,  it  appears 
that  these  provisions  were  made  for  the  purpose  of  prohib- 
iting banks  of  issue  rather  than  ordinary  banks  of  discount 
and  deposit.  It  has  been  further  noted  that  banking  was 
carried  on  in  the  State  from  1846  to  1857,  notwithstanding 
the  constitutional  and  statutory  prohibitions. 

That  banks  did  actually  exist  in  this  State  and  were  rec- 
ognized is  indicated  by  the  provisions  of  the  Code  of  1851 
for  the  taxation  of  the  shares  of  stock  in  banks.  Under 
property  liable  to  taxation  there  is  included  ''stock  or 
shares  in  any  bank  or  company  incorporated  or  otherwise, 
and  whether  incorporated  by  this  or  any  other  state,  and 
whether  situated  in  this  state  or  not".  Depreciated  bank 
notes  and  depreciated  stock  or  shares  in  corporations  were 
to  be  listed  "at  their  current  value  and  rate''.-''^^  No  further 
provision  was  made  for  the  taxation  of  banks  until  the  gen- 


BANKING  201 

eral  banking  act  and  the  law  providing  for  the  organization 
of  the  State  Bank  were  passed  in  1858.  Keference  has  been 
made  to  the  constitutional  provisions  under  which  these 
laws  were  enacted  and  submitted  to  the  electors  for  ap- 
proval. 

The  act  to  incorporate  the  State  Bank  of  Iowa  contains 
only  one  section  which  relates  to  taxation :  it  states  that  the 
*' General  Assembly  shall  never  impose  any  greater  tax  up- 
on property  employed  in  banking  under  this  act,  than  is  or 
may  be  imposed  upon  the  property  of  individuals."  The 
act  authorizing  general  banking  in  Iowa  declared  that 
shares  of  stock  in  banking  corporations  are  personal  prop- 
erty, and  provided  that  taxes  should  be  levied  upon  the 
corporation  as  such  and  not  upon  the  individual  stockhold- 
ers —  the  value  of  the  property  to  be  determined  annually 
by  the  bank  commissioners.  The  rate  of  taxation  was  to  be 
the  same  as  that  levied  on  other  taxable  property.^^^ 

The  creation  of  a  national  banking  system  by  Congress 
rendered  further  legislation  necessary;  and  so  the  Eleventh 
General  Assembly  in  1866  passed  a  law  relative  to  the  taxa- 
tion of  the  shares  of  national  banks.  This  measure  pro- 
vided that  all  shares  in  national  banks  should  be  included 
in  the  valuation  of  the  personal  property  of  the  owners, 
and  be  assessed  at  the  location  of  the  bank  at  a  rate  not 
greater  than  was  assessed  upon  other  moneyed  capital  in 
the  hands  of  individuals.  The  real  estate  owned  by  na- 
tional banks  was  subject  to  taxes  the  same  as  other  real 
estate.  Each  banking  association  was  required  to  list  its 
shares,  giving  the  names  of  the  owners  and  the  amount 
owned  by  each.  Moreover,  each  association  was  made  liable 
for  the  payment  of  the  tax  as  agent  of  each  of  its  share- 
holders, and  so  much  of  any  dividend  as  was  necessary  to 
pay  the  tax  could  be  withheld  by  the  bank.^^T 

The  validity  of  the  statute  of  1866  imposing  a  tax  upon 
the  shares  of  stock  of  national  banks  was  contested  and  de- 


202  ECONOMIC  LEGISLATION  IN  IOWA 

clared  to  be  unauthorized  and  invalid  by  the  Iowa  Supreme 
Court  in  1867.  A  detailed  treatment  of  this  interesting 
case  can  not  be  given  in  this  connection,  but  as  a  result  of 
the  decision  the  act  of  1866  was  repealed  and  other  provi- 
sions enacted  in  1868  for  the  taxation  of  national  banks. 
The  new  law  was  practically  identical  with  the  one  which 
had  been  declared  invalid  in  the  provisions  for  taxa- 
tion, but  it  repealed  all  acts  and  parts  of  acts  inconsistent 
with  its  provisions.  It,  moreover,  provided  that  in  case  the 
national  banking  system  should  be  changed  at  any  time  the 
assessment  of  shares  should  then  be  made  in  such  a  manner 
as  to  conform  to  the  changes  made.  It  provided  further 
that  such  shares  were  not  to  be  assessed  at  a  greater  rate 
than  that  imposed  on  other  moneyed  capital  in  the  hands  of 
individuals.^-^ 

This  law  soon  appeared  in  the  courts  for  adjudication 
and  the  Supreme  Court  of  the  State  held  that  the  objec- 
tionable features  of  the  former  law  had  been  removed. 
These  cases  definitely  sustained  the  right  of  the  State  to 
tax  the  shares  of  national  banks.^-^ 

The  general  banking  act  and  the  law  providing  for  the 
organization  of  the  State  Bank  of  Iowa  were  both  repealed 
in  1870,  and  no  additional  law  relative  to  bank  taxation  was 
enacted  until  1874.  It  should  be  noted,  however,  that  pri- 
vate banks  were  taxed  under  the  provision  of  the  Code  of 
1873,  which  required  personal  property  to  be  listed  and 
assessed  each  year  in  the  name  of  the  owner. ^^*^  The  fol- 
lowing paragraph  was  added  to  this  section  in  1874 : 

Except  moneys  and  credits  of  associations,  organized  under  the 
general  incorporation  laws  of  this  state,  for  the  purpose  of  transact- 
ing a  hanking  business,  and  moneys  and  credits  of  private  bankers, 
and  others  who  have  loaned  money,  bought  notes,  mortgages,  or 
other  securities  within  the  year  previous  to  the  time  of  assessing; 
in  every  such  instance  the  average  value  of  the  moneys  and  credits 
which  have  been  in  the  pos.session  or  under  the  control  of  the  person 


BANKING  203 

making  the  list  during  the  year  previous  to  the  time  of  making  said 
assessment,  shall  be  listed  for  taxation.^ai 

The  savings  bank  law  of  the  same  year  specifically  stated 
that  savings  banks  were  to  be  taxed  on  their  paid-up  cap- 
ital and  be  subject  to  the  same  rates  of  taxation  and  rules 
of  valuation  as  other  taxable  property.  The  taxes  were  to 
be  levied  on  and  paid  by  the  bank  and  not  by  the  individual 
stockholders.  Moreover,  the  law  stated  that  a  greater  tax 
should  never  be  imposed  on  property  employed  in  banking 
than  that  imposed  upon  the  property  of  individuals.  Fi- 
nally, the  law  exempted  from  taxation  the  franchise  of  sav- 
ings banks,  the  savings  and  funds  deposited  in  them,  and 
the  mortgages  and  other  securities. ^^^ 

In  1890  the  Twenty-third  General  Assembly  enacted  a 
law  which  required  all  shares  of  the  capital  stock  of  State 
or  commercial  banks  to  be  assessed  to  the  banks  as  such 
in  the  city  or  town  where  located,  and  not  to  the  individual 
shareholders.  It  has  been  pointed  out  that  the  shares  of 
national  banks  are  assessed  to  the  individual  stockhold- 
ers.^^^  Litigation  resulted  because  of  this  difference  in 
method  of  taxation,  but  the  courts  upheld  the  validity  of 
the  acts  as  being  general  and  not  special  laws  for  the  assess- 
ment and  collection  of  taxes. ^^* 

Under  the  provisions  of  the  law  as  compiled  in  the  Code 
of  1897  private  banks  are  assessed  on  the  aggregate  value 
of  moneys  and  credits,  after  deducting  from  that  value  the 
amount  of  deposits  and  of  debts  owing  by  the  banks ;  on  the 
actual  value  of  stocks  and  bonds,  after  deducting  those  ex- 
empt from  taxation;  and  on  the  other  property  pertaining 
to  the  business.  The  shares  of  stock  of  State  and  savings 
banks  and  loan  and  trust  companies  are  assessed  to  the 
banks  and  trust  companies,  respectively,  as  such  and  not  to 
the  individual  shareholders.  To  aid  in  fixing  the  value  of 
shares  such  associations  are  required  to  furnish  verified 


204  ECONOMIC  LEGISLATION  IN  IOWA 

statements  showing  separately  the  amount  of  capital  stock, 
surplus,  and  undivided  profits.  National  bank  shares  are 
assessed  to  the  individual  stockholders  at  the  place  where 
the  bank  is  located.  All  of  this  amounts  to  a  requirement 
that  national.  State,  and  savings  banks  and  loan  and  trust 
companies  shall  pay  taxes  on  their  capital  stock,  surplus, 
and  undivided  profits. ^^^ 

A  slight  change  was  made  in  1906  relative  to  deducting 
real  estate  in  the  valuation  of  stock;  and  a  very  important 
change  was  made  by  the  Thirty-fourth  General  Assembly 
in  1911.  This  law,  among  other  things,  provided  for  the 
taxation  of  moneys  and  credits  at  a  uniform  flat  rate  of  five 
mills  on  the  dollar  of  actual  valuation,  which  sum  was  to  be 
in  lieu  of  all  other  taxes  upon  moneys  and  credits.  It  pro- 
vided that  no  deduction  should  be  allowed  for  debts  on  any 
kind  of  bank  stocks  or  moneyed  capital.  It  provided,  more- 
over, that  the  ' '  shares  of  stock  of  national  banks  and  state 
and  savings  banks,  and  loan  and  trust  companies,  located 
in  this  state,  shall  be  assessed  to  the  individual  stockholders 
at  the  place  where  the  bank  or  loan  and  trust  company  is 
located."  In  order  to  determine  a  taxable  value  for  bank 
stocks  and  moneyed  capital  relatively  equal  to  the  taxable 
value  at  which  other  property  is  assessed,  as  compared  with 
its  actual  value,  such  stocks  and  moneyed  capital  were  to  be 
assessed  thereafter  upon  the  taxable  value  of  twenty  per 
cent  of  their  actual  value. ^^^  This  law,  as  the  reader  can 
see,  changes  the  method  of  taxing  the  stock  or  shares  of 
both  State  and  savings  banks  and  the  shares  of  loan  and 
trust  companies,  and  makes  the  shares  of  all  such  com- 
panies taxable  to  the  individuals,  just  as  national  bank 
shares  were  previously  taxed.  The  laws  of  the  Thirty-fifth 
General  Assembly  provide  a  penalty  for  any  bank  official 
who  refuses  to  furnish  the  assessor  with  a  list  of  stock- 
holders and  other  information  required  by  law.^^'^ 


BANKING  205 

The  laws  relative  to  the  taxation  of  banks  in  Iowa  have 
been  involved  in  almost  constant  litigation.  The  principle 
of  taxing  the  shares  of  stock  of  banks  has  been  followed 
since  1851.  The  general  banking  law  of  1858  provided  for 
the  levy  of  taxes  against  the  banks  as  such;  and  the  State 
Bank  Act  prohibited  the  imposition  of  taxes  at  a  greater 
rate  than  was  levied  on  the  property  of  individuals.  The 
creation  of  the  national  banking  system  brought  about  the 
repeal  of  both  of  these  laws.  A  statute  of  1866  provided 
for  the  taxation  of  the  shares  of  stock  in  national  banks; 
but  this  law  was  declared  unconstitutional  on  the  ground 
that  it  discriminated  against  national  banks,  which  were 
taxed  on  their  shares  of  stock  while  other  banks  were  taxed 
on  their  capital.  This  discrimination  was  remedied  by  a 
law  passed  in  1868. 

Before  1874  the  assets  of  private  banks  had  been  assessed 
as  personal  property.  In  that  year  a  new  law  provided  that 
such  banks  should  be  taxed  upon  the  average  value  of  mon- 
eys and  credits  owned  or  controlled  by  them  during  the 
previous  year.  The  law  establishing  savings  banks  pro- 
vided for  the  taxation  of  such  banks  on  their  paid-up 
capital. 

In  1890  the  capital  stock  of  State  and  commercial  banks 
was  made  assessable  to  the  banks  as  such  and  not  to  the 
individual  stockholders.  Three  classes  of  banks  were  then 
recognized  for  purposes  of  assessment  and  taxation  from 
this  time  until  1911.  They  were,  first,  private  banks  tax- 
able on  their  moneys  and  credits,  including  stocks  and 
bonds,  less  deposits,  just  debts,  and  non-taxable  securities ; 
second,  national  banks,  taxable  on  the  shares  of  stock  at  the 
place  where  the  bank  was  located ;  and  third.  State,  savings, 
and  commercial  banks,  the  shares  of  stock  of  which  were 
made  taxable  to  the  bank  as  such  and  not  to  the  individual 
stockholders. 


206  ECONOMIC  LEGISLATION  IN  IOWA 

The  law  relative  to  private  banking  associations  remains 
practically  unchanged;  but  in  1911  provision  was  made  to 
assess  the  shares  of  national  banks,  State  and  savings 
banks,  and  loan  and  trust  companies,  to  the  individual  stock- 
holders at  the  place  where  the  corporation  is  located,  rather 
than  to  the  banks  as  such. 


IX 
BUILDING  AND  LOAN  ASSOCIATIONS 

A  building  and  loan  association  —  using  the  term  to  in- 
clude all  kindred  associations  —  is  a  private  corporation 
organized  for  the  purpose  of  accumulating  the  money  of  its 
members,  by  periodical  payments  into  the  treasury,  to  be 
invested  in  loans  to  the  members  upon  real  estate  for  build- 
ing purposes.  The  borrowing  members  pay  interest  and  a 
premium  as  a  preference  in  order  to  secure  loans  over  other 
members  and  in  addition  continue  their  fixed  periodical  in- 
stallments. These  payments  and  the  payments  made  by 
non-borrowing  members,  in  addition  to  fines,  forfeitures, 
fees,  and  other  revenues,  go  to  make  up  a  common  fund 
which  is  accumulated  until  in  payments  and  profits  it  equals 
the  face  value  of  all  the  shares  in  the  association,  when  the 
assets,  less  expenses  and  losses,  are  pro  rated  among  the 
members,  which  cancels  the  borrower's  debt  and  gives  the 
non-borrower  an  amount  equal  to  the  face  value  of  his 
stock. 

Every  member  of  such  an  association  must  be  a  stock- 
holder. The  stock  is  paid  for  by  the  regular,  usually 
monthly,  payment  of  a  stipulated  minimum  sum  —  the  pay- 
ments being  continued  until  the  aggregate  of  the  money 
paid,  increased  by  the  profits,  amounts  to  the  maturing 
value  of  the  stock,  at  which  time  the  member  is  entitled  to 
the  full  maturing  value  of  the  share  and  surrenders  his 
share  for  the  amount. 

The  amount  of  the  capital  of  such  an  association  is  con- 
stantly increasing,  and  the  success  of  the  concern  depends 
upon  its  ability  to  keep  its  money  constantly  employed  in 

207 


208  ECONOMIC  LEGISLATION  IN  IOWA 

profitable  investment.  The  nature  of  the  business  and  the 
safeguards  surrounding  it  preclude  the  danger  of  a  run 
upon  the  concern  by  stockholders.  Such  associations  have 
had  an  important  influence  upon  the  financial  condition  of 
the  State  upon  one  or  two  occasions.^^^ 

Building  and  loan  associations  have  been  in  existence  in 
the  United  States  since  about  1840.  They  became  numer- 
ous in  Iowa  about  1888  and  1889.  The  first  legislation  in 
the  State  relating  to  such  concerns  was  enacted  in  1872 
when  a  measure  entitled  ''An  Act  to  Enable  Co-operative 
and  Mutual  Loan  Associations  to  raise  Funds  to  be  loaned 
among  their  Members  for  building  Homesteads,  and  for 
other  Purposes,  to  become  a  Body  corporate"  was  passed.^^^ 
This  law  provided  that  five  or  more  persons  might  incor- 
porate under  the  general  incorporation  laws  of  the  State  to 
raise  money  for  the  purpose  stated  in  the  title  of  the  act. 

Companies  so  organized  were  authorized  to  raise  money 
among  their  members  by  stated  dues,  fines,  interest  on 
loans  advanced,  and  premiums  bid  by  members  for  the  right 
of  precedence  in  taking  loans ;  they  were  also  authorized  to 
deal  in  real  estate  and  personal  property.  The  dues,  fines, 
and  premiums  paid  by  members  were  not  to  be  considered 
usurious,  and  no  member  was  permitted  to  hold  more  than 
twenty  shares. 

Similar  associations  organized  prior  to  the  passage  of 
the  law  were  given  the  same  privileges  as  those  organized 
subsequent  to  its  passage.  An  amount  not  to  exceed  ten 
per  cent  of  the  earnings  might  be  set  aside  for  current  ex- 
penses and  necessary  real  estate.  The  residue  of  the  earn- 
ings were  to  be  transferred  to  the  credit  of  the  shareholders, 
and  when  the  shares  were  fully  paid,  they  were  to  be  dis- 
tributed ratably  to  the  shareholders. 

No  further  legislation  was  enacted  on  this  subject  until 
1896  when  an  act  ''defining  building  and  loan  or  savings 
and  loan  associations  and  providing  for  the  organization, 


BUILDING  AND  LOAN  ASSOCIATIONS  209 

regulation,  examination  and  control,  and  providing  a  pen- 
alty for  the  violation  of  said  regulations,  and  repealing 
acts  and  parts  of  acts  inconsistent  with  this  act"  was 
passed.^^^  This  law  declared  that  corporations  organized 
for  the  purpose  of  furnishing  money  to  their  members  upon 
sufficient  security  should  be  known  as  building  and  loan  or 
savings  and  loan  associations.  Three  classes  of  associa- 
tions were  defined :  domestic  local  associations  whose  busi- 
ness was  confined  to  the  city  or  county  in  which  the  associa- 
tion was  located ;  domestic  associations,  whose  business  was 
not  so  restricted;  and  foreign  associations,  which  were  in- 
corporated in  other  States. 

Five  residents  might  incorporate  as  a  building  and  loan 
or  savings  and  loan  association  under  the  general  incor- 
poration laws  of  the  State  and  were  authorized  to  com- 
mence business  as  soon  as  one  hundred  shares  were 
subscribed.  The  law  specified  that  such  an  association 
should  be  governed  by  a  board  of  directors  elected  by  the 
stockholders.  The  content  of  the  articles  of  incorporation 
was  prescribed  and  the  articles  were  required  to  be  ap- 
proved by  the  Executive  Council,  certified  by  it,  and  filed 
in  the  office  of  the  Auditor  of  State,  who  then  issued  a  cer- 
tificate of  authority  for  the  concern  to  transact  business. 
The  officers  of  such  associations  were  also  required  to  give 
bonds  approved  by  the  State  Auditor.  The  law  specifically 
prohibited  any  building  and  loan  association  from  receiving 
deposits  of  money  without  issuing  shares  of  stock  or  from 
doing  any  banking  business. 

Such  associations  were  given  power  to  issue  stock  to 
members  to  be  paid  for  in  single,  stated,  or  monthly  pay- 
ments. The  amount  to  be  issued  to  any  one  person  was 
limited  to  ten  thousand  dollars.  They  were  allowed  to  col- 
lect dues,  fees,  fines,  premiums,  and  interest  upon  loans  in 
accordance  with  their  articles  of  incorporation,  and  such 
collections  were  not  to  be  considered  as  usurious.     They 

14 


210  ECONOI^nC  LEGISLATION  IN  IOWA 

were  permitted  to  buy  and  convey  real  and  personal  prop- 
erty and  to  make  loans  upon  real  estate  and  on  securities, 
and  other  regulations  were  laid  down  for  the  investment  of 
funds.  Members  were  to  be  permitted  to  withdraw  stock 
deposits  at  any  time,  in  accordance  with  the  articles  of 
incorporation. 

The  expense  account  of  such  associations  was  limited  to 
certain  fixed  proportions  of  the  amount  of  stock.  The  prof- 
its were  all  to  accrue  to  the  benefit  of  the  shareholders. 
The  Auditor  of  State  was  empowered  to  cause  such  associa- 
tions to  be  examined  at  least  once  a  year  and  report  the 
conditions  to  the  Governor  biennially.  Provision  was  also 
made  for  the  closing  up  of  the  affairs  of  any  association 
that  did  any  unsound  or  illegal  business. 

Foreign  associations  were  placed  under  stringent  regula- 
tions. They  were  required  to  file  with  the  Executive  Coun- 
cil a  certified  copy  of  articles  of  incorporation  and  by-laws, 
and  a  detailed  financial  statement.  Before  a  certificate  was 
issued  authorizing  such  an  association  to  transact  business 
in  the  State,  a  deposit  of  $100,000  in  securities  was  required 
as  security  for  resident  shareholders.  The  concern  must 
also  file  a  resolution  agreeing  to  the  serving  of  legal  process 
in  a  certain  manner.  Moreover,  foreign  associations  were 
discriminated  against  in  the  matter  of  fees. 

All  building  and  loan  or  savings  and  loan  associations 
doing  business  in  the  State  were  required  by  law  to  file 
annually  during  January,  with  the  State  Auditor,  a  de- 
tailed report  and  financial  statement  of  their  business  for 
the  previous  calendar  year.  Heavy  penalties  were  pre- 
scribed for  failure  to  report.  The  enforcement  of  the  pro- 
visions of  the  law  was  placed  in  the  hands  of  the  State 
Auditor  who  was  given  authority  to  revoke  the  certificate 
of  authority  to  do  business  in  the  State  of  any  association 
that  violated  any  of  the  provisions  of  the  statute. 

The  law  went  into  effect  on  July  4, 1896,  and  associations 


BUILDING  AND  LOAN  ASSOCIATIONS  211 

doing  business  in  the  State  prior  to  the  enactment  of  the 
new  law  were  required,  within  sixty  days,  to  reincorporate 
or  so  amend  their  articles  of  incorporation  and  by-laws  as 
to  comply  with  the  provisions  of  the  new  act.  There  were 
few  changes  made  in  the  law  as  it  appeared  in  the  Code  of 
1897;  and  a  legalizing  act  was  passed  in  1898  for  the  pur- 
pose of  legalizing  contracts  made  prior  to  the  taking  effect 
of  the  Code.  Important  additions  and  amendments  were 
made  by  the  Twenty-eighth  General  Assembly  in  1900.^^^ 

This  act  of  1900,  among  other  things,  forbade  the  issue  of 
preferred  stock  by  building  and  loan  associations.  It  pre- 
scribed a  new  schedule  of  rates,  fixing  the  maximum  per- 
centage of  the  assets  which  an  association  would  be 
permitted  to  use  for  salaries  and  current  expenses.  It  fixed 
the  maximum  fines  to  be  charged  to  stockholders  whose 
payments  were  in  arrears,  and  defined  the  terms  of  with- 
drawal. It  limited  the  rate  of  premium  and  interest  charged 
to  members  on  loans  to  eight  per  cent,  and  defined  the 
terms  upon  which  non-borrowing  members  might  withdraw 
from  an  association. 

The  law,  moreover,  defined  the  terms  upon  which  mort- 
gages might  be  foreclosed  by  associations.  It  prescribed 
the  procedure  in  case  of  voluntary  liquidation,  as  well  as  in 
case  of  consolidation  with  other  companies.  The  rate  of 
interest  chargeable  was  limited  to  eight  per  cent;  and  dis- 
criminatory rates  of  interest  among  members  were  prohib- 
ited. The  Executive  Council  was  empowered  to  revoke  the 
certificate  of  authority  to  transact  business  of  any  associa- 
tion doing  an  illegal  business ;  and  it  was  declared  unlawful 
for  any  person  to  sell  stock  in  any  association  not  author- 
ized to  do  business  in  the  State.  The  Executive  Council 
was  given  discretionary  power  in  the  matter  of  deciding 
whether  the  articles  of  foreign  corporations  complied  with 
the  laws  of  the  State  and  whether  they  afforded  equal 
security  and  protection  to  the  members.    In  case  they  did 


212  ECONOMIC  LEGISLATION  IN  IOWA 

not,  such  association  could  not  secure  authority  to  transact 
business  in  this  State.  And  finally,  penalties  were  pro- 
vided for  the  violation  of  the  new  provisions  and  a  legal- 
izing clause  was  attached  to  prevent  the  impairment  of  any 
contract  effected  by  the  act.^^^ 

The  Twenty-ninth  General  Assembly  in  1902  pro\ided 
for  the  regulation  of  unincorporated  building  and  loan  asso- 
ciations by  extending  the  law  pertaining  to  incorporated 
associations  to  cover  those  which  were  unincorporated,  in 
so  far  as  it  could  be  made  applicable.  Such  associations 
were  required  to  submit  their  plans  of  business  to  the  Ex- 
ecutive Council  for  approval  and  to  deposit  securities  of  a 
certain  prescribed  class,  in  the  amount  of  $50,000,  with  the 
Auditor  of  State.  Such  securities  were  to  be  held  in  trust 
for  the  purpose  of  securing  the  fulfilling  and  carrying  out 
of  all  contracts  made  by  such  associations.  No  unincor- 
porated association  was  to  be  permitted  to  operate  unless 
the  Executive  Council  approved  its  plan  of  business.  The 
officers  were  required  to  give  bonds  subject  to  the  approval 
of  the  State  Auditor,  who  was  also  empowered  to  require 
detailed  reports  and  financial  statements  similar  to  those 
required  of  incorporated  companies  and  to  cause  examina- 
tions to  be  made  as  often  as  four  times  a  year.  Severe  pen- 
alties were  prescribed  for  violation  of  the  law  and  for  the 
misuse  of  the  funds  of  an  association  by  an  officer  or  agent. 
Violation  of  the  law  was  also  cause  for  the  revocation  of 
the  certificate  of  authority  to  transact  business  and  for  the 
appointment  of  a  receiver  to  close  up  the  affairs  of  the 
association.^^2 

In  1911  the  general  incorporation  law  was  so  amended  as 
to  limit  the  incorporation  fee  for  building  and  loan  associa- 
tions to  a  maximum  of  twenty-five  dollars  and  to  exempt 
such  associations  from  the  payment  of  renewal  fees.^** 


BUILDING  AND  LOAN  ASSOCIATIONS  213 

THE  TAXATION  OF  BUILDING  AND  LOAN  ASSOCIATIONS 

No  provision  was  made  for  taxing  building  and  loan  asso- 
ciations until  in  1876,  when  the  following  method  was 
prescribed : 

That  the  shares  of  stock  of  mutual  loan  and  building  associations, 
shall  be  assessed  at  their  cash  value  but  that  only  the  unredeemed 
shares  of  such  stock  shall  be  taxed  and  such  unredeemed  shares 
shall  be  listed  to  the  individual  owners  thereof. ^•^^ 

The  law  of  1896  which  defined  such  associations  and  pre- 
scribed rules  and  regulations  for  them  provided  that  the 
shares  of  stock  of  building  and  loan  associations  should  be 
classified  as  moneys  and  credits  for  the  purposes  of  taxa- 
tion.^^^  New  provisions  for  the  taxation  of  these  associa- 
tions appear  in  the  Code  of  1897.  The  shares  of  stock  are  to 
be  assessed  to  the  individual  holders  at  their  place  of  resi- 
dence, but  the  reserve  and  other  funds  of  such  an  associa- 
tion are  subject  to  taxation  at  its  principal  place  of  business, 
and  are  to  be  assessed  against  it  as  other  personal  property 
and  paid  by  the  association.  Detailed  regulations  are  pro- 
vided to  insure  the  listing  of  such  property  for  assess- 
ment.3^^ 

The  section  of  the  Code  of  1897  above  referred  to  was 
repealed  in  1913  and  a  substitute  section  enacted.  The  sub- 
stitute provides  that  the  real  estate  owned  by  the  association 
shall  be  taxed  in  the  same  manner  as  the  reserve  fund  and 
some  change  is  made  in  the  manner  of  listing  the  property, 
but  the  method  of  taxation  remains  unchanged.^^^ 

Building  and  loan  associations  have  existed  in  the  State 
for  about  fifty  years.  The  first  legislation  relating  to  them, 
passed  in  1872,  remained  practically  unchanged  until  1896 
when  a  more  comprehensive  law  was  placed  upon  the  statute 
books.  This  law  came  as  a  result  of  the  increasing  number 
of  associations  which  were  being  organized  about  that  time. 


214  ECONOMIC  LEGISLATION  IN  IOWA 

An  examination  of  the  Auditor's  reports  (1887-1914)  re- 
veals the  fact  that  there  were  more  building  and  loan  asso- 
ciations organized  and  doing  business  within  the  State  and 
that  they  were  doing  more  business  during  the  first  year  of 
the  operation  of  the  law  of  1896  than  for  any  subsequent 
year.  There  were  at  that  time  one  hundred  and  seventeen 
associations  with  assets  of  more  than  twelve  million  dollars, 
and  the  Auditor  took  occasion  to  state  that  such  associa- 
tions were  exerting  a  large  influence  on  the  finances  of  the 
State  and  in  his  opinion  were  very  desirable  institutions. 
Almost  immediately,  however,  the  number  of  associations 
decreased.  The  Auditor  reported  in  1901  that  building  and 
loan  associations  had  not  prospered  in  the  same  measure  as 
the  other  moneyed  institutions  of  the  State  —  due  to  the 
lower  rates  of  interest  and  the  smaller  demand  for  money. 
A  few  years  later  he  reported  that  these  associations  would 
all  quit  the  field.^*®  This  type  of  institution  seems  to  have 
regained  some  favor  in  very  recent  years,  however,  and  the 
report  for  1914  shows  that  the  number  of  concerns  was 
fifty,  with  assets  of  above  seven  millions  of  dollars  and  re- 
ceipts of  more  than  four  millions  of  dollars. ^^^  Such  asso- 
ciations have  undoubtedly  served  a  valuable  purpose  and 
are  still  filling  a  need  in  helping  to  finance  the  building  of 
homes. 


X 

TRADE  AND  COMMERCE 

As  used  in  this  connection  the  expression  ''trade  and 
commerce ' '  is  very  inclusive :  it  comprehends  traffic  by  the 
purchase,  sale,  or  exchange  of  commodities,  the  transporta- 
tion of  persons  or  property,  and  navigation.  The  regulation 
of  trade  and  commerce  is  carried  on  through  both  national 
and  State  agencies.  Thus  the  Federal  Constitution  gives 
Congress  the  power  to  regulate  commerce  with  foreign 
nations  and  among  the  several  States ;  while  the  States  have 
control  over  intrastate  or  domestic  commerce. 

Legislation  pertaining  to  the  regulation  of  navigation, 
transportation,  corporations,  insurance,  and  banking,  hav- 
ing been  treated  in  earlier  chapters  of  this  book,  need  not 
be  discussed  in  this  connection.  In  the  present  chapter  only 
those  laws  will  be  considered  which  aim  to  safeguard  the 
interests  of  the  consumer  and  the  creditor,  and  those  which 
aim  to  promote  and  safeguard  business. 

LAWS  TO  PEOTECT  CONSUMERS 

The  statute  books  of  Iowa  contain  many  laws  enacted  for 
the  purpose  of  affording  protection  to  the  consumer  of 
goods.  Among  these  are  to  be  found  laws  relating  to  the 
regulation  of  weights  and  measures,  pure  food  laws,  mis- 
branding laws,  anti-adulteration  laws,  and  inspection  laws. 

The  Regulation  of  Weights  and  Measures: — The  first 
law  pertaining  to  weights  and  measures  was  enacted  by  the 
Legislative  Assembly  of  the  Territory  of  Iowa  in  1839.  It 
was  entitled  ''An  Act  regulating  weights  and  measures ",^^^ 

215 


216  ECONOMIC  LEGISLATION  IN  IOWA 

and  under  its  provisions  the  several  boards  of  county  com- 
missioners of  the  counties  in  the  Territory  were  required  to 
procure  for  their  respective  counties  a  set  of  standard 
weights  and  measures,  to  be  kept  by  the  clerk  of  the  county 
court,  for  the  purpose  of  trying  and  sealing  the  weights  and 
measures  used  in  the  counties.  Persons  buying  or  selling 
commodities  by  measure  or  weight  could  have  their  meas- 
ures compared  with  the  county  standards  and  have  them 
sealed ;  and  persons  buying  or  selling  commodities  by  meas- 
ures or  weights  not  corresponding  to  the  county  standards 
were  liable  to  a  fine  of  twenty  dollars  for  each  offense.  The 
standards  to  be  procured  were  to  consist  of  the  inch,  the 
foot,  and  the  yard  for  linear  measure,  the  half-bushel  for 
dry  measure,  the  gallon  for  liquid  measure,  and  a  set  of 
avoirdupois  weights. 

A  more  comprehensive  and  detailed  law  was  passed  on 
this  subject  in  1843.  More  standards  were  to  be  provided, 
and  the  people  of  each  county  were  required  to  elect  an- 
nually at  the  general  election  an  inspector  of  weights  and 
measures.  The  inspector  so  elected  was  to  give  bond  for 
the  faithful  performance  of  his  duties.  He  was  provided 
with  a  seal  and  authorized  to  inspect  and  compare  the 
weights  and  measures  in  use  in  the  county  with  the  county 
standards,  and  to  brand  or  seal  such  weights  and  measures 
as  conformed  to  the  legal  standard.  Every  person  using 
unlawful  weights  or  measures  became  liable,  upon  convic- 
tion, for  treble  damages  and  the  costs  of  suit.  The  law 
specifically  stated  that  all  contracts  made  thereafter  in  the 
Territory  for  work  to  be  done  or  for  the  sale  of  any  com- 
modity should  be  made  according  to  the  standards  provided 
by  the  act ;  but  parties  were  permitted  to  adopt  a  different 
standard  of  weight  and  measure  by  mutual  agreement. 
The  legal  weights  per  bushel  of  grains  usually  sold  by  the 
bushel  —  wheat,  rye,  corn,  barley,  and  oats  —  were  fixed, 
and  the  act  of  1839  was  repealed.^^^ 


TRADE  AND  COMMERCE  217 

The  law  regulating  weights  and  measures  was  redrawn  in 
the  Code  of  1851.  As  it  appeared  there  the  law  required  the 
Treasurer  of  State  to  procure  a  set  of  weights  and  meas- 
ures, and  designated  the  particular  standards  to  be  pro- 
cured. The  county  judge  of  each  county  was  required  to 
obtain  a  set  of  weights  and  measures  accurately  correspond- 
ing with  those  procured  by  the  State  Treasurer  and  deposit 
them  in  the  office  of  the  county  treasurer;  and  these  were  to 
constitute  the  county  standards.  Any  person  desiring  to 
have  his  weights  or  measures  inspected  was  to  apply  to  the 
county  treasurer  at  his  office.  It  was  the  treasurer's  duty 
to  test  such  weights  or  measures,  and  he  was  permitted  to 
charge  a  fee  for  his  work. 

The  hundred  weight  was  declared  to  consist  of  one  hun- 
dred pounds  avoirdupois,  and  the  ton  to  consist  of  twenty 
hundred  weight.  Contracts  not  specifying  some  other 
standard  of  weight  or  measure  were  declared  to  mean  the 
legal  standards ;  and  a  bushel  of  certain  articles  mentioned 
was  declared  to  mean  the  amount  of  weight  specified  in  the 
law.^^^ 

Some  amendments  and  additions  to  the  law  were  made 
from  time  to  time  during  the  next  ten  years  for  the  purpose 
of  establishing  the  legal  weight  of  certain  commodities  — 
such  as  coal,  lime,  grains,  and  grasses  —  which  had  not  been 
determined.  Provision  was  also  made  for  the  inspection  of 
lumber  and  shingles;  and  the  Secretary  of  State  was  ap- 
pointed keeper  of  the  official  weights  and  measures  of  the 
State.354 

In  1862  the  weight  and  measure  law  was  again  redrawn. 
The  new  law  declared  that  the  standard  weights  and  meas- 
ures which  had  been  furnished  to  the  State  by  the  United 
States  government  should  be  the  standards  of  weight  and 
measure  throughout  the  State.  Standards  were  defined  in 
detail  and  provision  was  made  for  the  appointment,  by  the 
Governor,  of  a  Superintendent  of  Weights  and  Measures  to 


218  ECONOMIC  LEGISLATION  IN  IOWA 

have  charge  of  the  standards  and  to  have  general  super- 
vision of  the  weights  and  measures  of  the  State.  The  super- 
intendent was  to  procure  a  set  of  copies  of  the  original 
standards  to  be  used  in  adjusting  county  standards. 

The  boards  of  supervisors  of  the  several  counties  were 
authorized  to  procure  authenticated  standards  from  the 
State  Superintendent  of  Weights  and  Measures,  and  to  ap- 
point county  sealers  for  their  respective  counties.  Provi- 
sion was  also  made  for  the  appointment  of  city  sealers  and 
the  duties,  powers,  and  fees  of  such  officials  were  specified 
in  detail. 

The  law  declared  that  the  standard  weights  and  measures 
as  defined  and  provided  for  in  the  act  should  govern  all 
contracts  for  work  to  be  done  or  for  anything  to  be  sold  by 
weight  or  measure  within  the  State;  and  penalties  were 
provided  for  selling  anything  by  any  weight  or  measure  not 
conforming  to  the  State  standards.  It  was,  moreover,  made 
the  duty  of  every  person  keeping  commodities  for  sale  by 
weight  or  measure  to  have  his  weights  and  measures  com- 
pared with  the  standards  at  least  once  each  year.^^^ 

Regulations  for  weighmasters  of  public  scales  were  en- 
acted in  1864  and  amended  in  1872.  These  regulations  re- 
quired such  weighmasters  to  take  oath  to  keep  the  scales 
correctly  balanced,  to  make  true  weights,  to  render  a  cor- 
rect account  to  the  person  for  whom  the  weighing  was  done, 
and  to  keep  a  correct  register  of  all  weighing  done,  showing 
the  weight,  name  of  person  for  whom  weighing  was  done, 
and  the  date.  Upon  demand  the  weighmaster  was  required 
to  furnish  a  certificate,  showing  the  above  data  for  his  own 
weights,  to  any  person  for  whom  weighing  was  done. 
Weighmasters  were  also  required  to  keep  a  standard  fifty 
pound  weight  for  testing  their  scales  and  to  test  and  bal- 
ance such  scales  at  least  once  a  month.  Penalties  were 
provided  for  violations  of  the  act.^^*'  This  law  remained 
unchanged  until  1911,  except  for  an  occasional  amendment 


TRADE  AND  COMMERCE  219 

defining  or  changing  the  weight  of  a  bushel  of  some  com- 
modity.^°^ 

The  law  of  1911  empowered  the  State  Food  and  Dairy 
Commissioner  and  his  assistants  to  inspect  scales,  weights, 
and  measures  wherever  the  same  were  kept  for  use  in  con- 
nection with  the  sale  of  merchandise  or  any  commodity  sold 
by  weight  or  measure,  or  where  any  product  was  manufac- 
tured under  contract  by  weight  or  measure.  The  commis- 
sioner was  authorized  to  procure  from  the  State  Superin- 
tendent of  Weights  and  Measures  the  necessary  standards 
and  make  inspections  upon  complaint  as  well  as  upon  his 
own  initiative.  Provision  was  made  for  procuring  neces- 
sary standards,  and  penalties  were  fixed  for  keeping  false 
weights  and  measures.^^* 

The  whole  law  pertaining  to  weights,  measures,  and  in- 
spection was  rewritten  and  enlarged  in  1913  and  amended 
in  1915  and  1917.  The  standard  measures  of  length,  sur- 
face, volume,  and  weight  were  redefined  in  more  detail,  and 
the  State  standards  were  declared  to  conform  to  those  of 
the  United  States.  The  number  of  articles  to  be  measured 
by  bushel  weight  was  increased;  the  capacity  of  fruit  and 
berry  boxes  was  required  to  be  full  measure ;  and  the  seller 
of  goods  not  measured  by  standard  weights  or  measures 
was  required  to  furnish  to  the  buyer,  upon  request,  a  writ- 
ten statement  of  the  net  weight  of  the  goods.  Reasonable 
variations  were  permitted,  but  the  use  of  bottomless  meas- 
ures was  prohibited  unless  they  conformed  in  shape  to  the 
United  States  standard  measure.  The  law  required  the 
standardization  of  milk  bottles.  It  required  the  sale  of 
coal,  coke,  and  charcoal  to  be  made  by  weight  only,  and 
provided  a  method  for  the  verification  of  the  amount  in 
weight  sold  to  each  customer.  It  required  the  licensing  by  a 
State  official  of  every  slot  or  automatic  weighing  device  and 
the  payment  of  an  annual  licensing  fee  of  three  dollars  for 
each  machine  or  device  operated. 


220  ECONOMIC  LEGISLATION  IN  IOWA 

The  inspection  of  all  scales,  weights,  and  measures  kept 
for  use  in  connection  with  the  sale  or  manufacture  of  any 
commodity  was  provided  for  —  the  inspection  to  be  made 
upon  complaint  or  upon  the  initiative  of  the  inspector.  The 
possession  of  false  scales  or  measures  was  prohibited  under 
penalty  and  they  were  subject  to  confiscation  by  the  in- 
spector. 

The  enforcement  of  the  law  was  placed  under  the  super- 
vision of  the  State  Dairy  and  Food  Commissioner,  who  was 
empowered  to  appoint  a  chief  inspector  of  weights  and 
measures  upon  the  approval  of  the  Executive  Council, 
which  chief  inspector  was  to  be  paid  a  regular  salary  and 
work  under  the  supervision  of  the  commissioner.  Provi- 
sion was  also  made  for  the  appointment  of  the  necessary 
number  of  assistant  inspectors. 

The  commissioner  was  also  required  to  appoint  an  em- 
ployee of  the  dairy  and  food  commission  to  be  State  sealer 
of  weights  and  measures  and  to  have  charge  of  the  stand- 
ards of  the  State.  He  was  given  general  supervision  of  the 
weights  and  measures  in  use  in  the  State,  and  was  required 
to  make  tests  of  weights  or  measures  or  devices  upon  writ- 
ten request.  The  department  of  physics  of  the  State  Uni- 
versity of  Iowa  was  required  to  render  technical  aid  in 
necessary  cases. ^^^ 

All  the  acts  or  parts  of  acts  conflicting  with  the  rewritten 
law  were  repealed.  The  law  is  comprehensive  and  is  an 
improvement  over  the  previous  law. 

Pure  Food  and  Inspection: — Pure  food  laws,  misbrand- 
ing laws,  anti-adulteration  laws,  and  inspection  laws  are  all 
very  closely  connected:  they  all  have  a  common  purpose, 
which  is  to  protect  the  health  of  the  people  and  to  prevent 
them  from  being  imposed  upon  and  cheated  by  paying  for 
^n  article  and  getting  an  inferior  substitute.  There  has 
been  a  large  amount  of  legislation  on  this  subject,  but  the 


TRADE  AND  COMMERCE  221 

laws  enacted  before  1886  were  of  a  rather  fragmentary 
character.  Since  that  time  such  legislation  has  centered 
about  the  State  Dairy  Commissioner  and  his  successor  the 
State  Dairy  and  Food  Commissioner. 

In  1838  the  first  Legislative  Assembly  of  the  Territory 
passed  an  act  ''to  punish  the  venders  of  unwholesome 
liquors  and  provisions ' '  which  provided  a  heavy  fine  for  the 
sale  of  unwholesome  or  adulterated  goods.  The  Code  of 
1851  contained  more  inclusive  provisions  for  the  prohibi- 
tion of  the  sale  of  unwholesome  or  adulterated  foods, 
liquors,  drugs,  and  medicines.  Misbranding  was  also  pro- 
hibited and  the  penalties  were  made  heavier.  Fragmentary 
legislation  continued  to  be  enacted  after  the  Code  was 
adopted:  acts  were  passed  to  prevent  the  adulteration  of 
milk  and  cheese,  to  prevent  the  misbranding  of  dairy  and 
other  food  products,  to  require  the  correct  labeling  of  mix- 
tures, and  to  establish  a  uniform  cream  gauge. ^^^ 

The  manufacture  and  sale  of  oleomargarine  for  butter 
and  the  use  of  foreign  substances  in  the  manufacture  of 
cheese  became  widespread  during  the  years  from  1880  to 
1886.  This  counterfeit  product  tended  to  decrease  the  legit- 
imate dairy  industry  in  the  State  not  only  by  narrowing  the 
market  within  the  State,  but  also  by  injuring  the  reputation 
of  the  State  dairy  products  in  the  large  eastern  markets. 
This  state  of  affairs  brought  about  the  enactment  of  a  law, 
in  1886,  entitled  ' '  An  Act  to  Prevent  Deception  in  the  Man- 
ufacture and  Sale  of  Imitations  of  Butter  and  Cheese." 
The  law  required  all  such  imitations  to  be  clearly  marked, 
and  prohibited  the  shipment  of  such  products  unless  clearly 
marked.  Other  restrictions  were  provided  and  the  penalty 
was  severe.  The  first  part  of  this  law  was  very  much  like 
the  statutes  which  had  preceded  it.^^^ 

In  addition  to  the  above  provisions  the  office  of  State 
Dairy  Commissioner  was  created.  The  commissioner  was 
given  a  regular  salary  and  his  duty  was  to  secure,  so  far  as 


222  ECONOMIC  LEGISLATION  IN  IOWA 

possible,  the  enforcement  of  the  law.  He  was  given  power 
to  secure  data  and  information  and  was  required  to  report 
annually  to  the  Governor  of  the  State.^*^^  By  this  act  the 
legislature  recognized  the  futility  of  passing  prohibitory 
laws  without  adequate  means  of  enforcement.  The  law  car- 
ried ^yiih.  it  an  appropriation  large  enough  to  insure  its 
successful  administration.  During  this  same  year  (1886), 
oleomargarine  became  subject  to  taxation  under  the  United 
States  internal  revenue  laws,  and  this  provision  to  some 
extent  facilitated  the  enforcement  of  the  State  law  in  that 
it  made  easy  the  discovery  of  such  product. 

In  spite  of  the  experience  with  such  laws,  the  legislature 
continued  to  pass  separate  fragmentary  acts  to  prohibit  the 
mislabeling  of  food  products  and  the  sale  of  adulterated 
goods  such  as  lard,  flour  and  mill  products,  canned  fruits, 
and  poisons. ^"^^  The  powers  and  duties  of  the  State  Dairy 
Commissioner  were  enlarged  in  1892.  He  was  authorized 
to  appoint  an  agent  in  every  city  of  over  ten  thousand  in- 
habitants to  collect  samples  of  milk  for  examination  and 
every  milk  dealer  in  such  cities  was  required  to  secure  a 
permit  from  the  commissioner  and  pay  an  annual  fee  of  one 
dollar.  A  register  of  permits  was  to  be  kept  by  the  com- 
missioner, and  violations  of  the  law  were  to  be  punished. ^*^"* 

The  Twenty-fifth  General  Assembly,  in  1894,  redefined 
imitation  butter  and  cheese  and  described  illegal  mixtures 
and  colorations  of  products  in  more  detail.  It  prohibited 
the  use  of  imitation  butter  and  cheese  products  in  public 
eating  places  except  when  their  use  was  advertised;  and 
the  method  of  testing  milk  was  regulated.  Provision  was 
made  in  1896  for  the  publication,  at  State  expense,  of  the 
annual  proceedings  of  the  Iowa  State  Dairy  Association  — 
the  object  being  the  encouragement  of  the  dairy  industry  in 
the  State.363 

The  law  relating  to  the  State  Dairy  Commissioner  and 
the  prohibition  of  imitation  butter  and  cheese  was  changed 


TRADE  AND  COMMERCE  223 

to  some  extent  in  the  Code  of  1897.  The  different  parts  of 
the  law  were  collected  and  combined.  More  stringent  provi- 
sions appear  in  the  matter  of  marking  imitation  products 
and  in  regard  to  testing  milk.  In  addition  to  the  other  reg- 
ulations the  law  as  it  appears  in  the  Code  of  1897  provides 
that  cows  kept  for  dairy  purposes  must  not  be  kept  in 
crowded  and  unhealthful  places,  nor  be  fed  upon  food  which 
produces  impure  or  unwholesome  milk.  Dealers  were  also 
required  to  keep  their  utensils  in  a  clean  and  sanitary  con- 
dition, and  to  fill  out  and  send  to  the  commissioner  such 
blank  reports  as  might  be  required  by  him.^^^ 

In  1900  provision  was  made  for  the  appointment  of  a 
deputy  and  an  assistant  to  the  State  Dairy  Commissioner 
in  order  to  enable  him  to  better  enforce  the  law.^*'^ 

The  amount  of  legislation  on  the  subject  of  pure  food  and 
inspection,  misbranding,  and  adulteration  has  been  en- 
larged at  each  session  of  the  General  Assembly  since  1904. 
By  an  act  passed  in  1906  the  State  Dairy  Commissioner 
became  the  State  Food  and  Dairy  Commissioner  with  en- 
larged powers  and  duties.  He  was  charged  with  the  duty 
of  enforcing  the  law;  he  was  allowed  to  appoint,  with  the 
approval  of  the  Executive  Council,  as  many  assistants  as 
he  deemed  necessary,  including  an  official  chemist;  he  was 
charged  with  the  making  of  all  rules  and  regulations  neces- 
sary for  carrying  out  the  provisions  of  the  law;  and  he  was 
authorized  to  procure  for  examination  samples  of  food 
shipped  into  or  offered  for  sale  in  this  State.  It  was,  more- 
over, made  the  duty  of  the  several  county  attorneys  in  the 
State  to  assist  the  commissioner  in  the  enforcement  of  the 
law. 

The  manufacture  and  sale  of  adulterated  foods  was  also 
prohibited  and  an  adulterated  food  was  defined  in  detail. 
The  labels  required  to  be  used  were  described  and  the  style 
and  content  specified.  The  commissioner  was  authorized  to 
issue  bulletins  showing  the  result  of  inspections,  analyses, 


224  ECONOMIC  LEGISLATION  IN  IOWA 

and  prosecutions.  Penalties  for  violation  of  the  law  were 
prescribed;  an  appropriation  was  made  to  enable  the  com- 
missioner to  enforce  the  law;  and  conflicting  acts  were 
repealed.^^® 

In  addition  to  the  above  act  an  amendment  gave  the  com- 
missioner or  his  assistants  power  to  enter  any  factory  or 
building  and  to  open,  examine,  and  inspect  any  package  or 
container  believed  to  contain  any  product  manufactured  or 
sold  in  violation  of  the  law.^^^  Other  amendments  prohib- 
ited the  sale  or  purchase  of  adulterated  milk  or  cream,  re- 
quired the  pasteurization  of  skimmed  milk  offered  for  sale, 
prohibited  the  manipulation  of  cream  testers;  and  a  con- 
current resolution  urged  the  Iowa  members  of  Congress  to 
favor  the  enactment  of  a  national  pure  food  law.^^*' 

The  Thirty-second  General  Assembly  passed  no  fewer 
than  ten  acts  and  one  concurrent  resolution  on  the  subject 
of  pure  foods  and  pure  products. ^^^  Chapter  131  defined 
paint  and  linseed  oil,  and  required  manufacturers  and  deal- 
ers to  correctly  label  white  lead,  paints,  mixed  paints,  and 
linseed  oil.  The  required  labels  were  defined  and  such 
products  were  to  be  sold  only  under  their  true  name  as  de- 
termined by  prescribed  tests  and  standards.  The  enforce- 
ment of  this  act  was  placed  in  the  hands  of  the  State  Food 
and  Dairy  Commissioner. 

The  matter  of  pure  drugs  received  attention  in  Chapter 
176  of  the  laws  of  the  same  session.  By  this  law  the  manu- 
facture and  sale  of  adulterated  drugs  was  prohibited.  The 
terms  ''drug",  ''adulterated",  and  "misbranded"  were  de- 
fined in  detail ;  the  use  of  denatured  alcohol  in  the  prepara- 
tion of  any  product  intended  for  the  use  of  man  for 
medicinal  purposes  was  prohibited ;  and  the  enforcement  of 
this  act  was  placed  in  the  hands  of  the  Pharmacy  Commis- 
sioners. Other  amendatory  acts  redefined  terms,  and  food 
standards  were  established  for  flavoring  extracts,  vinegar, 
and  butter.    An  appropriation  for  the  enforcement  of  the 


TRADE  AND  COMMERCE  225 

law  was  made  and  the  salaries  of  the  deputy  and  assistant 
commissioners  were  increased. 

The  most  important  law  passed  by  the  Thirty-second 
General  Assembly  having  to  do  with  pure  products  was 
entitled  ''An  Act  to  prevent  fraud  in  the  sale  of  agricul- 
tural seeds,  concentrated  commercial  feeding-stuffs  and  the 
materials  from  which  they  are  manufactured,  and  to  regu- 
late the  sale  thereof,  defining  concentrated  commercial  feed- 
ing-stuffs and  what  shall  constitute  purity  in  various  kinds 
of  seeds ;  prohibiting  the  adulteration  and  providing  for  the 
correct  weighing  and  marking  of  agricultural  seeds  and  con- 
centrated commercial  feeding-stuffs ;  and  providing  for  the 
collection  of  samples,  analyses  of  the  same,  and  fixing  pen- 
alties for  its  violation;  and  vesting  the  execution  and 
enforcement  of  this  act  in  the  state  food  and  dairy  commis- 
sioner, and  making  an  appropriation  therefor.  "^^^ 

According  to  the  provisions  of  this  statute  every  package 
of  feeding-stuffs  was  required  to  bear  a  statement  showing 
the  number  of  net  pounds  of  feeding-stuffs  in  the  package, 
the  name  or  trade  mark  under  which  the  article  was  sold, 
the  name  and  address  of  the  manufacturer,  the  place  of 
manufacture,  and  the  ingredients  of  which  the  article 
was  composed.  Agricultural  seed  containers  were  required 
to  show  the  name  of  the  seed,  the  name  and  address  of  the 
seedman,  the  purity  of  the  seed,  and  the  locality  where  the 
seed  was  grown.  Manufacturers  and  dealers  were  required 
to  pay  inspection  fees,  and  dealers  in  proprietary  medi- 
cines were  required  to  pay  an  annual  license  fee  of  one 
hundred  dollars  in  lieu  of  inspection  fees. 

The  different  products  were  defined  in  detail,  and  the 
weed  seeds  and  other  foreign  articles  which  were  to  be  con- 
sidered as  impurities  in  agricultural  seeds  were  enumerated. 
A  standard  of  purity  and  viability  of  agricultural  seeds 
was  established,  and  the  method  of  enforcement  of  the  law 
was  provided.     Penalties  for  violation  were  provided  in 

15 


226  ECONOMIC  LEGISLATION  IN  IOWA 

each  of  the  acts  passed;  and  the  acts  and  parts  of  acts  in 
conflict  ^\dth  the  new  provisions  were  repealed. 

Amendments  of  minor  importance  were  passed  in  1909, 
together  wdth  a  law  to  prevent,  on  the  part  of  buyers  of 
produce,  unfair  discrimination  between  different  sections 
and  communities  in  the  State.^"^ 

In  1911  the  law  regulating  the  sale  of  boiled  and  raw 
linseed  oil  and  the  oil  of  turpentine  was  made  more  ex- 
plicit. The  law  providing  for  the  appointment  of  the  State 
Dairy  and  Food  Commissioner  and  describing  his  powers 
and  duties,  and  providing  for  the  appointment  of  his  depu- 
ties and  assistants  and  the  State  chemist,  and  providing 
for  reports  was  completely  rewritten.  The  provisions  re- 
quiring licenses  for  persons  or  companies  supplying  milk  to 
the  retail  trade  in  municipalities  were  made  more  inclusive, 
and  stringent  regulations  were  imposed  upon  the  operators 
of  milk  testing  apparatus.^'^^ 

The  pure  food  law  was  also  changed  in  1911.  The  terms 
*'food",  *'misbranded",  and  ''adulterated"  were  redefined, 
and  a  standard  was  prescribed  for  ice-cream.  Slight 
changes  and  additions  were  made  in  the  pure  drug  law; 
and  a  requirement  provided  that  every  bag,  barrel,  or 
package  of  flour  offered  for  sale  should  have  the  net  weight 
certified  on  the  container.  An  addition  to  the  law  provided 
for  the  regulation  of  the  marking  of  articles  of  merchandise 
made  in  whole  or  in  part  of  gold,  silver,  or  their  alloys  —  in 
connection  with  which  tests  were  prescribed  and  standards 
defined.^'^^ 

In  1913  the  Thirty-fifth  General  Assembly  provided  for 
the  regulation  of  the  following:  cold  storage  and  refriger- 
ating warehouses;  the  sale  of  calcium  carbide;  the  sanita- 
tion of  food  producing  establishments ;  and  the  manufacture 
and  sale  of  commercial  fertilizers.  Furthermore,  it  prohib- 
ited fraudulent  advertising  and  amended  the  misbranding 
law  to  some  extent.^'^^ 


TRADE  AND  COMMERCE  227 

Something  should  be  said  of  the  new  regulatory  meas- 
ures. Persons  or  corporations  wishing  to  operate  a  cold 
storage  or  refrigerating  warehouse  were  required  to  apply 
to  the  State  Dairy  and  Food  Commissioner  stating  the  pro- 
posed location  of  the  plant.  The  commissioner  was  then  to 
cause  an  examination  to  be  made  of  the  sanitation  and 
equipment  of  the  plant.  If  the  examination  resulted  favor- 
ably, a  license  was  issued  for  one  year  upon  the  payment  of 
a  license  fee  of  twenty-five  dollars.  The  law  defined  the 
terms  used.  Moreover,  such  concerns  were  placed  under 
the  supervision  of  the  State  Dairy  and  Food  Commissioner 
who  was  authorized  to  inspect  the  business  or  to  appoint 
other  persons,  properly  qualified,  to  make  inspections.  Un- 
sanitary conditions  were  not  to  be  tolerated  and  licenses 
could  be  revoked  upon  such  ground.  Accurate  records  were 
required  to  be  kept  of  the  receipt  and  withdrawal  of  food, 
and  reports  must  be  made  to  the  commissioner  quarterly  or 
oftener.  The  quality  of  the  food  stored  was  regulated ;  and 
the  storage  period  was  limited  to  twelve  months  —  although, 
under  certain  conditions,  the  commissioner  could  grant  an 
extension  of  time  for  articles  in  good  condition. 

The  law  prohibited  the  sale  of  cold  storage  goods  as  fresh 
goods,  and  articles  once  released  from  storage  could  not  be 
restored.  The  enforcement  of  the  law  was  made  a  part  of 
the  duty  of  the  Dairy  and  Food  Commissioner,  and  pen- 
alties were  provided  for  the  violation  of  the  law.^'^^ 

The  act  regulating  the  sale  of  calcium  carbide  is  neither 
so  extensive  nor  so  important.  It  prescribes  the  style  of 
containers  for  such  carbide,  requires  special  labels,  pro- 
vides for  analysis,  and  charges  the  Dairy  and  Food  Com- 
missioner with  its  enforcement.^^^ 

The  content  of  the  law  requiring  the  sanitation  of  food- 
producing  establishments  is  indicated  in  the  title,  which  is 
as  follows:  "An  Act  providing  for  the  sanitation  of  baker- 
ies, canneries,  packing  houses,  slaughter  houses,  dairies, 


228  ECONOMIC  LEGISLATION  IN  IOWA 

creameries,  cheese  factories,  confectioneries,  restaurants, 
hotels,  groceries,  meat  markets,  and  all  other  food-produc- 
ing establishments,  manufactories,  or  other  places  where 
food  is  prepared,  manufactured,  packed,  stored,  sold  or  dis- 
tributed, and  vehicles  in  which  food  is  placed  for  transpor- 
tation; providing  for  the  licensing  of  persons,  firms,  or 
corporations  operating  or  conducting  bakeries,  candy  fac- 
tories, ice  cream  factories,  canning  factories,  slaughter 
houses,  meat  markets  or  places  where  fresh  meats  are  sold 
at  retail;  fixing  such  license  fee  and  the  duration  of  such 
license  and  the  rights  thereunder ;  defining  food,  regulating 
the  wholesomeness  of  food  manufactured,  prepared,  packed, 
stored,  sold,  distributed  or  transported ;  defining  the  duties 
of  the  state  food  and  dairy  commissioner  in  relation  there- 
to; providing  penalties  for  the  violation  thereof,  and  re- 
pealing acts  in  conflict  therewith.  "^'^^ 

Briefly  this  law  attempts  to  secure  the  sanitation  of  the 
buildings,  utensils,  and  surroundings  of  places  in  which  food 
is  produced.  It  requires  so  far  as  possible  the  cleanliness 
of  the  workmen,  and  prohibits  the  employment  of  diseased 
persons.  A  license  fee  of  three  dollars  per  year  is  required 
from  each  establishment  and  the  licenses  may  be  revoked 
for  cause  by  the  Dairy  and  Food  Commissioner  who  is 
charged  with  the  enforcement  of  the  law.  The  inspection  of 
establishments  is  provided  for  and  penalties  for  the  viola- 
tion of  the  law  are  prescribed. 

The  law  for  the  regulation  of  the  manufacture  and  sale  of 
commercial  fertilizers  contains  no  new  features.  The  con- 
tainers are  required  to  be  plainly  marked  showing  the  quan- 
tity and  content  of  the  material.  An  annual  license  fee  of 
twenty  dollars  for  each  brand  of  fertilizer  is  required  and 
the  Dairy  and  Food  Commissioner  is  charged  with  the  en- 
forcement of  the  law.^^^ 

Slight  changes  were  made  in  the  Pure  Food  Laws  by  both 
the  Thirty-sixth  and  Thirty-seventh  General  Assemblies.^®^ 


TRADE  AND  COMMERCE  229 

For  the  purpose  of  insuring  a  higher  standard  of  excellence 
and  quality  and  a  better  market,  a  trade  mark  was  adopted 
for  butter  manufactured  in  Iowa.  And  rules  and  regula- 
tions were  provided  for  the  use  of  the  trade  mark  and  to 
prevent  its  fraudulent  use.  Misbranding  of  several  addi- 
tional commodities  was  prohibited.  The  manufacture  and 
sale  of  proprietary  or  patent  medicines  was  regulated  and  a 
detailed  law  to  prevent  the  manufacture  and  sale  of  adul- 
terated or  misbranded  insecticides  and  fungicides  within 
the  State  was  placed  upon  the  statute  books. 

As  regards  this  class  of  legislation  it  appears  that  the 
legislature  overlooked  the  necessity  of  providing  adequate 
means  for  the  enforcement  of  the  law.  The  fact  that  a  law 
is  enacted  and  placed  upon  the  statute  books  has  little  effect 
unless  the  department  charged  with  its  enforcement  is  pro- 
vided with  the  necessary  inspectors  and  other  help.  Legis- 
lation relative  to  pure  food,  misbranding,  anti-adulteration, 
inspection,  and  sanitation  are  quite  comprehensive :  its  weak 
feature  is  the  lack  of  adequate  means  of  enforcement. 

An  examination  of  these  laws  and  the  provisions  for 
their  enforcement  shows  that  the  State  Dairy  and  Food 
Commissioner  is  responsible  for  the  enforcement  of  the 
following  laws:  the  dairy  law;  the  pure  food  law;  the 
weights  and  measures  law;  the  agricultural  seed  law;  the 
concentrated  feeding-stuffs  law ;  the  condimental  stock  food 
law;  the  paint  and  linseed  oil  law;  the  turpentine  law;  the 
sanitary  law ;  the  cold  storage  law ;  the  commercial  fertilizer 
law ;  and  the  calcium  carbide  law. 

In  1913  the  commissioner  had  a  staff  of  twenty-six  assist- 
ants and  clerks.  The  total  expense  of  the  office  for  the  year 
ending  November  1,  1913,  was  $53,698.08;  and  the  fees 
earned  by  the  office  for  the  same  period  amounted  to 
$36,504.52.  It  appears  that  the  commissioner  has  been  suc- 
cessful in  the  enforcement  of  the  law  in  so  far  as  he  and  his 
staff  of  assistants  were  able  to  do  the  work.^^^ 


230  ECONOMIC  LEGISLATION  IN  IOWA 

Laws  for  the  Inspection  and  Regulation  of  Petroleum  and 
its  Products: — The  increased  use  of  petroleum  and  its 
products  and  the  abuses  which  crept  into  the  manufacture 
and  sale  of  such  products  have  caused  the  enactment  of  a 
body  of  legislation  for  the  purpose  of  protecting  consumers. 
It  appears  that  the  legislature  has  had  two  purposes  in 
view  in  placing  these  laws  upon  the  statute  books :  first,  to 
protect  the  consumers  and  the  public  against  danger  of  fire 
and  explosions  from  the  use  of  inferior  and  unsafe  oils; 
and  second,  to  protect  consumers  and  dealers  from  imposi- 
tion through  the  sale  to  them  of  inferior  approved  oils  for 
superior  approved  oils,  that  is,  from  imposition  through 
misrepresentation. 

The  first  law  of  this  character  was  passed  in  1872,  and 
was  entitled  "An  Act  to  Regulate  the  Manufacturing,  Keep- 
ing, and  Sale  of  certain  Oils."  This  law  prohibited  the  sale 
of  petroleum  oil  inflammable  at  less  than  one  hundred  and 
ten  degrees  Fahrenheit.  Any  person  or  corporation  vio- 
lating this  provision  was  liable  to  fine  and  imprisonment, 
and  also  for  damages  to  any  person  injured  because  of  the 
violation.^^^ 

In  1878  city  councils  or  township  trustees  were  author- 
ized to  appoint  oil  inspectors.  Such  inspectors  were  to 
make  tests  of  oils  offered  for  sale;  and  those  oils  which 
would  not  ignite  or  explode  at  a  temperature  of  one  hundred 
and  fifty  degrees  Fahrenheit  were  to  be  approved  and  so 
marked.  Oils  that  would  ignite  or  explode  at  a  temperature 
of  less  than  one  hundred  and  fifty  degrees  Fahrenheit  were 
to  be  condemned  and  could  not  be  sold  for  illuminating  pur- 
poses. Inspectors  were  required  to  keep  an  accurate  record 
of  tests  made,  and  penalties  were  provided  for  the  mis- 
branding by  inspectors  or  for  selling  oils  below  standard. 
The  act  was  compulsory  upon  the  petition  of  five  or  more 
inhabitants  of  the  city  or  town.^^* 

A  more  comprehensive  law  was  passed  in  1884  which  re- 


TRADE  AND  COMMERCE  231 

pealed  the  act  of  1878  and  provided  for  a  State-wide  system 
of  inspection.  Under  the  provisions  of  this  law  the  Gov- 
ernor was  to  appoint  an  inspector.  It  was  made  the  duty 
of  such  inspector  "to  examine  and  test  the  quality  of  all 
such  oils  offered  for  sale  by  any  manufacturer,  vender,  or 
dealer;  and  if  upon  such  testing  or  examination  the  oils 
shall  meet  the  requirements  hereinafter  specified,  he  shall 

fix  his  brand  or  device,  ^Approved,  flash  test degrees' 

(inserting  the  number  of  degrees),  with  the  date,  over  his 
official  signature,  upon  the  package,  barrel  or  cask  contain- 
ing the  same."^^^ 

The  inspector,  who  was  authorized  to  appoint  a  suitable 
number  of  deputies  to  aid  him  in  his  work,  could  enter  upon 
the  premises  of  manufacturers  or  others.  He  and  his  depu- 
ties were  required  to  use  the  oil  testers  adopted  and  recom- 
mended by  the  Iowa  State  Board  of  Health,  which  board 
was  also  required  to  prepare  rules  and  regulations  concern- 
ing the  manner  of  inspection  in  the  use  of  the  oil  testers 
adopted.  The  inspectors  were  also  required  to  take  oaths 
and  give  bonds  for  the  faithful  performance  of  their  duties. 

A  schedule  of  fees  to  be  charged  for  inspection  was  pro- 
vided by  law.  Records  of  all  inspections  were  required  to 
be  kept  and  reported  to  the  State  Auditor  biennially.  Pen- 
alties were  provided  for  false  branding,  for  selling  con- 
demned oil,  and  for  adulteration.  Low  ignition  point  oils 
were  prohibited  as  freight,  and  other  safeguards  were  pro- 
vided to  secure  the  purpose  of  the  law. 

The  law  of  1884  was  amended  from  time  to  time.  Tests 
were  made  more  stringent;  inspectors  were  required  to 
turn  fees  into  the  State  treasury  and  the  schedule  of  fees 
was  lowered;  the  salary  of  the  inspectors  was  raised  and. 
made  payable  from  the  State  treasury;  the  State  Board  of 
Health  was  given  additional  discretion  in  the  regulation  of 
inspection;  and  the  provisions  of  the  law  were  made  to 
apply  to  naptha,  benzine,  and  gasoline.     Most  of  these 


232  ECONOMIC  LEGISLATION  IN  IOWA 

amendments  were  made  for  the  purpose  of  improving  the 
administration  and  enforcement  of  the  law.^^^ 

The  law  was  codified  and  rearranged  in  the  Code  of  1897, 
but  no  important  changes  or  additions  were  made  in  its 
content.  Slight  amendments  were  also  made  during  the 
next  few  years,  the  most  important  of  which  gave  the  State 
Board  of  Health  power  to  approve  or  condemn  for  use  in 
the  State  certain  oil-burning  lamps  and  apparatus.^^''^ 

In  1904  the  Thirtieth  General  Assembly  repealed  all  the 
previous  enactments  on  the  subject  and  provided  a  more 
complete  substitute,  the  main  features  of  which  are  similar 
to  the  old  law.  Among  the  important  changes  made  in  the 
law  the  following  should  be  mentioned:  the  Governor  was 
to  appoint  inspectors,  not  exceeding  fourteen  in  number, 
one  of  whom  was  designated  chief  inspector,  who  was  given 
general  supervision  of  the  inspection  service  of  the  State; 
all  differences  arising  in  the  inspection  of  oils  were  to  be  re- 
ferred to  the  chief  inspector;  the  inspectors  must  be  resi- 
dents of  the  State  and  not  interested  in  the  manufacture  or 
sale  of  petroleum  products;  gasoline  must  be  plainly 
marked  and  the  sale  of  oils  not  inspected  was  forbidden; 
and  the  State  Board  of  Health  was  given  power  to  approve 
or  disapprove  lamps  or  apparatus  used  in  burning  the  light- 
ing products  of  petroleum.  The  power  of  removing  inspec- 
tors was  retained  by  the  Governor.^^^ 

Additional  precautions  were  added  in  the  matter  of  label- 
ing gasoline  in  1906  and  unfair  commercial  discrimination 
in  the  sale  of  petroleum  products  was  prohibited  under  a 
severe  penalty.  This  latter  provision  was  aimed  especially 
against  discrimination  between  localities.  The  enforcement 
was  placed  in  the  hands  of  the  Attorney  General.^^^ 

Additional  amendments  were  enacted  in  1909  and  1911  — 
the  law  relating  to  the  labeling  and  inspection  of  gasoline, 
benzine,  or  naptha  being  made  more  stringent.  In  1915 
new  provisions  were  enacted  which  will  make  for  the  better 
enforcement  of  the  law.-'^'**' 


TRADE  AND  COMMERCE  233 

LAWS  TO  PKOMOTE  BUSINESS 

Corporations: — The  main  features  of  the  general  cor- 
poration laws  of  Iowa  have  been  considered  in  a  separate 
chapter.  It  was  there  pointed  out  that  the  Iowa  corporation 
laws  contain  no  new  features;  that  the  regulatory  legisla- 
tion has  been  neither  extreme  nor  hostile ;  and  that  the  laws 
are  neither  complete  nor  well-arranged.  Further  consider- 
ation of  these  laws  will  not  be  necessary  in  this  connection. 

General  Partnerships: — There  has  been  no  legislation 
enacted  in  this  State  for  the  regulation  of  general  partner- 
ships ;  the  Common  Law  rules  are  still  followed.  The  char- 
acteristic elements  of  a  general  partnership  are  that  it  is  an 
unincorporated  association  or  legal  relation ;  that  it  is  cre- 
ated by  the  agreement  of  the  interested  parties  and  not  by 
law;  that  it  requires  two  or  more  competent  parties;  that  it 
involves  the  establishment  of  a  common  stock,  or  other 
capital  fund  of  some  sort,  from  the  united  contributions  of 
the  interested  parties ;  that  it  is  formed  for  the  transaction 
of  some  lawful  business,  trade,  or  occupation,  which  the 
partners  are  to  own  and  carry  on  as  principals ;  and  that  it 
has  for  its  object  the  pecuniary  gain  of  the  members.  A 
partnership  is  the  result  of  a  contract  rather  than  a  contract 
in  itself  —  that  is,  it  is  the  relation  or  association  which 
the  contract  creates.^^^ 

Limited  Partnerships: —  The  general  partnership  is  very 
old  and  was  the  common  form  of  business  organization  be- 
fore the  era  of  corporations.  The  first  general  incorpora- 
tion law  to  be  placed  upon  the  statute  books  of  Iowa  was 
passed  in  1847.  But  before  the  general  incorporation  law 
was  passed,  or,  to  be  exact,  at  the  first  session  of  the  Legis- 
lative Assembly  of  the  Territory  of  Iowa,  a  law  relating  to 
limited  partnerships  was  enacted.^^^  This  law  authorized 
the  formation  of  limited  partnerships  —  a  form  of  organ- 


234  ECONOMIC  LEGISLATION  IN  IOWA 

ization  having  some  features  in  common  with  both  general 
partnerships  and  ordinary  business  corporations.  The 
Iowa  law  was  an  exact  copy  of  an  act  passed  a  year  previ- 
ously by  the  Legislative  Assembly  of  the  Wisconsin  Terri- 

^Qj.y  393 

The  act  of  1847  recognized  the  existence  and  legality  of 
general  partnerships,  that  is,  it  recognized  a  general  part- 
nership as  a  legal  relation  based  upon  a  contract  between 
two  or  more  competent  persons  to  unite  their  property, 
labor,  or  skill  in  the  conduct  of  a  lawful  business  as  prin- 
cipals for  their  joint  profit.  The  limited  partnership  pro- 
vided for  was  a  deviation  from  the  old  and  common  general 
partnership.  It  authorized  limited  partnerships  for  the 
transaction  of  agricultural,  mercantile,  mechanical,  mining, 
or  manufacturing  business,  to  be  formed  by  two  or  more 
persons  upon  the  terms,  with  the  rights  and  powers,  and 
subject  to  the  conditions  and  liabilities  prescribed  by  the 
statute. 

Limited  partnerships  were  to  consist  of  one  or  more  gen- 
eral partners  jointly  and  severally  responsible  as  general 
partners,  and  of  one  or  more  special  partners  who  were  to 
contribute  a  specific  sum  in  actual  cash  to  the  capital  stock, 
and  who  were  not  liable  for  the  debt  of  the  partnership 
beyond  the  amount  contributed  by  them  to  the  capital. 
Only  general  partners  were  allowed  to  transact  the  busi- 
ness of  the  firm.  Persons  desirous  of  forming  a  limited 
partnership  were  required  to  make  and  severally  sign  a 
certificate  containing  the  following  information:  the  name 
of  the  firm ;  the  nature  of  the  business  to  be  transacted ;  the 
names  of  all  the  general  and  special  partners,  specifying 
the  members  of  each  class,  and  noting  their  respective 
places  of  residence;  the  amount  of  capital  contributed  by 
each  special  partner ;  and  the  period  for  which  the  partner- 
ship was  to  endure,  specifying  the  date  of  commencing  and 
the  date  of  termination. 


TRADE  AND  COMMERCE  235 

This  certificate  was  to  be  acknowledged  and  certified  in 
the  same  manner  as  deeds  were  certified.  It  was  then  to  be 
recorded  in  the  office  of  the  register  of  deeds  for  the  county 
in  which  the  business  was  located.  Such  records  were  to  be 
recorded  in  a  book  kept  for  that  purpose  and  were  to  be 
open  to  public  inspection.  Moreover,  it  was  necessary  for 
one  or  more  of  the  general  partners  to  file  an  affidavit  stat- 
ing that  the  sums  specified  in  the  certificate  to  have  been 
contributed  by  the  special  partners  to  the  capital  stock  had 
been  actually  paid  in  cash.  Failure  to  comply  with  all  the 
provisions  relative  to  organization  rendered  all  the  inter- 
ested parties  liable  as  general  partners. 

The  publication  of  the  terms  of  the  partnership  was  re- 
quired. Subsequent  alteration  in  the  names  of  the  part- 
ners, in  the  character  of  the  business,  in  the  capital  or 
shares,  or  in  any  matter  specified  in  the  original  certificate 
served  to  dissolve  the  partnership  and  rendered  each  part- 
ner individually  liable  as  a  general  partner.  Special 
partners  were  permitted  to  examine  into  the  progress  of 
the  business  and  to  advise  as  to  its  management,  but  they 
could  neither  transact  any  of  the  firm's  business  themselves 
nor  be  employed  as  agent  or  attorney  for  that  purpose. 
Other  sections  of  the  law  provided  for  the  protection  of 
creditors  and  prescribed  the  duties  and  liabilities  of  the 
partners  in  greater  detail.^^* 

A  new  law  on  the  subject  of  limited  partnerships,  w^hich 
contained  some  very  interesting  features,  was  enacted  in 
1846.  According  to  its  provisions  limited  partnerships 
were  authorized  for  the  transaction  of  any  lawful  business. 
The  partners  were  allowed  to  make  such  regulations  as  they 
pleased,  consistent  with  legal  and  honest  purposes,  for  the 
management  of  the  business ;  and  they  were  authorized  to 
render  their  interests  in  the  association  transferable. 
Under  the  provisions  of  this  act  the  death  of  a  partner  did 
not  terminate  the  partnership.     The  firm  might  also  sue 


236  ECONOMIC  LEGISLATION  IN  IOWA 

and  be  sued  in  its  partnership  name,  and  the  private  prop- 
erty of  the  partners  was  not  liable  for  the  debts  of  the 
partnership,  unless  the  association  had  not  substantially 
complied  with  the  law.  The  other  features  of  the  act  were 
similar  to  those  of  the  former  law  on  the  same  subject  which 
was  not  repealed.^^^ 

The  Seventh  General  Assembly  in  1858  enacted  a  new  law 
relative  to  the  formation  of  limited  partnerships,  the  provi- 
sions of  which  are  practically  the  same  as  those  of  the  law 
of  1839.  Although  the  methods  and  regulations  pertaining 
to  organization  are  the  same,  the  purpose  for  which  limited 
partnerships  might  be  formed  was  made  to  include  the 
transaction  of  any  mercantile,  mechanical,  or  manufactur- 
ing business;  and  such  associations  were  prohibited  from 
assigning  property  when  insolvent  and  from  giving  a  pref- 
erence to  any  creditor.  The  former  laws  were  not  re- 
pealed.^'^^ 

The  limited  partnership  law  as  passed  in  1858  still  re- 
mains upon  the  statute  books  unchanged,  except  that  the 
Ninth  General  Assembly  in  1862  authorized  limited  partner- 
ships to  be  formed  for  the  transaction  of  any  lawful  busi- 
ness, thus  removing  the  restrictions  upon  the  purpose  of 
such  an  association,  and  the  Nineteenth  and  Thirtieth  Gen- 
eral Assemblies  changed  slightly  the  regulations  in  relation 
to  the  publication  of  the  terms  of  the  partnership.^^^ 

Instruments  of  Credit: — Instruments  of  credit  and  the 
rules  of  law  which  relate  to  them  are  of  great  practical 
importance.  The  law  upon  the  subject  is,  however,  very 
extensive  and  intricate  —  which  makes  the  treatment  of  the 
subject  in  a  limited  space  a  difficult  task.  Omitting  any 
definitions  of  terms  and  explanations  of  the  law,  the  purpose 
of  the  present  discussion  will  be  to  merely  present  the 
development  connected  with  the  changing  of  the  law  mer- 
chant as  commonly  understood  and  administered  into  the 
form  of  statute  law. 


TRADE  AND  COMMERCE  237 

Two  acts  relating  to  this  subject  were  passed  by  the  Leg- 
islative Assembly  of  the  Territory  of  Iowa  in  January, 
1839,  one  of  which  required  the  payment  of  protested  for- 
eign and  inland  bills  of  exchange  with  legal  interest  by  the 
drawer  or  endorser.^^^  The  other  law,  which  was  entitled 
*'An  Act  relative  to  promissory  notes,  bonds,  due  bills,  and 
other  instruments  of  writing  ",^'^^  declared  that  such  instru- 
ments should  be  taken  according  to  their  purport.  It  regu- 
lated the  assignment  of  such  instruments,  and  described  the 
procedure  in  case  of  action.  It  declared  such  instruments 
to  be  good  only  in  case  good  or  valuable  consideration  had 
been  given.  It  defined  and  prohibited  fraud.  It  defined 
tender  and  individual  liability,  and  prescribed  regulations 
concerning  signatures  and  evidence.  In  1843  the  latter  of 
these  acts  was  repealed  and  a  new  act  substituted  therefor, 
which  was  simply  a  copy  of  the  former  act  with  an  added 
section  relating  to  the  status  of  instruments  executed  by  an 
agent  in  the  name  of  the  principal.^^*^ 

The  law  was  rewritten  in  the  Code  of  1851.  Here  the 
rules  governing  the  negotiability  of  written  instruments 
were  more  clearly  set  forth,  as  were  those  relating  to  the 
rights  of  the  holder,  the  liabilities  of  the  parties,  the  pre- 
sentment for  payment,  and  assignment.  With  the  exception 
of  slight  amendments  relative  to  days  of  grace  and  assign- 
ment the  law  remained  unchanged  until  it  was  superseded 
by  the  Negotiable  Instruments  Law  in  1902.  The  changes 
made  by  the  two  subsequent  codes  were  in  arrangement 
only.^^i 

The  Negotiable  Instruments  Law: — In  1882  the  English 
Parliament  enacted  the  Bills  of  Exchange  Act,  which  was  a 
partial  codification  of  the  existing  law  concerning  bills, 
notes,  and  checks.  There  was  need  of  a  similar  codification 
of  the  law  in  this  country;  and  so  in  1895  the  ** Commis- 
sioners for  the  Promotion  of  Uniformity  of  Legislation  in 


238  ECONOMIC  LEGISLATION  IN  IOWA 

the  United  States"  arranged  to  have  the  law  drafted  in 
suitable  form  for  enactment  by  the  State  legislatures.  The 
law  as  drawn  is  known  as  the  "Negotiable  Instruments 
Law"  and  is  based  upon  the  English  "Bills  of  Exchange 
Act",  with  such  modifications  and  additions  as  were  deemed 
advisable.  It  has  since  been  adopted,  with  slight  modifica- 
tions in  some  instances,  by  more  than  forty  States  of  the 
Union.  "It  does  not  very  materially  change  the  law  mer- 
chant as  it  has  long  been  understood  and  administered,  but 
it  puts  into  the  form  of  a  statute  what  before  rested  for  the 
most  part  in  decisions  and  customs,  while  it  seeks  to  pro- 
duce uniformity  upon  a  few  points  as  to  which  the  courts  of 
the  several  states  were  not  agreed.  "'^^^ 

The  Uniform  Negotiable  Instruments  Law  was  placed 
upon  the  statute  books  of  Iowa  by  an  act  of  the  Twenty- 
ninth  General  Assembly  in  1902.  The  act  is  long  and  in- 
volved. It  is  made  up  of  seventeen  parts  and  contains  a 
total  of  one  hundred  and  ninety-eight  sections.  Conse- 
quently it  will  not  be  possible  in  this  connection  to  set  forth 
the  law  with  sufficient  fullness  of  detail  to  enable  the  reader 
to  thoroughly  understand  it.^^^ 

The  object  of  the  act,  however,  may  be  clearly  stated.  It 
was  drafted  for  the  purpose  of  codifying  the  law  on  the 
subject  of  negotiable  instruments  and  to  make  it  uniform 
throughout  the  country  through  its  adoption  by  the  legis- 
latures of  the  several  States.  The  purpose  was  to  obliterate 
State  lines  with  respect  to  the  law  governing  negotiable 
paper,  which  is  so  important  in  the  conduct  of  interstate 
commerce.  It  was  an  attempt  to  remove  the  confusion  and 
uncertainty  which  was  liable  to  arise  from  the  conflict  of 
statutes  and  judicial  decisions  in  the  different  States,  and 
to  make  plain  the  controlling  rules  of  law. 

The  Warehouse  Receipts  Laiv: — A  warehouse  receipt  is 
a  simple  contract  between  a  warehouseman  and  the  owner 


TRADE  AND  COMMERCE  239 

of  goods,  by  which  the  warehouseman  agrees  to  store  the 
goods  and  the  owner  to  pay  certain  specified  compensation 
for  such  storage.  ''At  common  law  such  a  contract  was  not 
assignable,  but  the  exigencies  of  trade  and  the  protection 
required  for  bona  fide  purchasers  have  caused  these  ware- 
house receipts  to  be  regarded  as  evidences  or  symbols  of 
property  and  given  to  them  the  capacity  of  transferring 
the  right  of  property.  "^^^  Laws  have  been  enacted  from 
time  to  time  until  such  receipts  now  have  the  quality  of 
negotiability. 

The  first  law  to  be  passed  relative  to  warehouse  receipts 
in  this  State  was  enacted  in  1862.  Under  this  act  as  amend- 
ed in  1864  the  transfer  of  a  warehouse  receipt  had  the  same 
effect  as  the  transfer  of  the  property  itself.  The  main 
purpose  of  the  law  was  to  prevent  fraud.  It  prohibited 
the  issue  of  a  receipt  until  the  goods  were  actually  deliv- 
ered and  in  storage  and  required  such  goods  to  be  held 
subject  to  the  holder  of  the  receipt.  The  issue  of  a  second 
receipt  until  after  the  first  was  cancelled  was  prohibited. 
Nor  was  the  warehouseman  to  remove  or  transfer  the  goods 
without  the  consent  of  the  receipt-holder.  Severe  penalties 
were  provided  for  violation  of  the  law.^*^^ 

The  Twenty-first  General  Assembly  in  1886  prescribed 
the  conditions  under  which  dealers  in  grain  were  to  be  al- 
lowed to  issue  elevator  or  warehouse  receipts.  Each  dealer 
was  required  to  file  a  declaration  of  his  purpose  with  the 
recorder  of  deeds  in  the  county  where  the  business  was  to  be 
transacted  and  to  keep  an  exact  record  of  sales  and  trans- 
fers.   The  receipts  issued  were  declared  to  be  negotiable.^*'^ 

In  1892  an  act  was  passed  "authorizing  corporations  and 
persons  engaged  in  the  slaughtering  and  packing  business 
to  issue  certificates  and  warehouse  receipts  on  their  own 
products,  while  in  their  custody  and  control."  This  law 
prescribed  detailed  regulations  relative  to  the  issue  and 
transfer  of  such  certificates  and  was  quite  similar  in  its 


240  ECONOMIC  LEGISLATION  IN  IOWA 

main  features  to  the  act  of  1886.  The  Code  of  1897  col- 
lected and  combined  the  laws  along  this  line,  but  it  made  no 
important  additions.^^^ 

No  further  legislation  was  enacted  on  this  subject  until 
1907  when  the  Thirty-second  General  Assembly  enacted 
into  a  statute  of  the  State  the  Uniform  Warehouse  Receipts 
Act  which  had  been  drawn  under  the  supervision  of  and 
recommended  for  passage  by  the  Commissioners  for  the 
Promotion  of  Uniformity  of  Legislation  in  the  United 
States.  The  act,  which  has  now  been  adopted  by  thirty 
States  and  Territories,  is  entitled  ''An  Act  authorizing 
persons,  firms  or  corporations  engaged  in  the  business  of 
storing  goods  for  profit,  to  issue  warehouse  receipts  on  the 
goods  so  stored;  to  regulate  the  issuance,  negotiation  and 
transfer  of  such  receipts,  and  to  provide  punishment  for 
violation  of  said  regulations,  and  repealing  section  thirty- 
one  hundred  twenty-nine  (3129)  of  the  code. ""^^^  It  is  a 
long  act  of  sixty  sections.  It  declares  that  warehouse  re- 
ceipts may  be  issued  by  any  warehouseman.  The  form  of 
the  receipt  and  its  essential  terms  are  prescribed  in  detail. 
Several  sections  are  devoted  to  each  of  the  following  points : 
the  issuance  of  receipts ;  the  negotiability  and  transfer  of 
receipts ;  and  punishment  for  violation  of  the  law.  The  act 
was  not  to  apply  to  receipts  issued  before  it  went  into  effect. 
It  provided,  moreover,  that  in  "any  case  not  provided  for 
in  this  act,  the  rules  of  law  and  equity,  including  the  law 
merchant,  and  in  particular  the  rules  relating  to  the  law  of 
principal  and  agent  and  to  the  effect  of  fraud,  misrepresen- 
tation, duress  or  coercion,  mistake,  bankruptcy,  or  other 
invalidating  cause,  shall  govern.  "^^^ 

The  general  effect  of  the  act  was  to  make  the  Iowa  law 
uniform  with  that  of  the  other  States  which  should  adopt 
it,  and  to  make  clear  the  conditions  under  which  warehouse 
receipts  were  to  be  considered  as  negotiable  instruments. 


TRADE  AND  COMMERCE  241 

The  Bills  of  Lading  Law: —  The  Uniform  Bills  of  Lading 
Act,  drafted  by  Professor  Williston  and  approved  by  the 
Commissioners  on  Uniform  State  Laws  in  1909,  was  en- 
acted into  law  by  the  Thirty-fourth  General  Assembly  of 
Iowa  in  1911.  This  elaborate  statute  containing  fifty-seven 
sections  defines  and  describes  negotiable  and  non-negoti- 
able bills  of  lading.  It  provides  for  the  issuance,  endorse- 
ment, and  transfer  of  such  bills.  It  defines  also  the  rights 
and  duties  of  common  carriers  and  of  all  persons  issuing 
and  receiving  such  bills  of  lading.^ ^^ 

Mr.  L.  J.  Tompkins  says,  concerning  this  class  of  com- 
mercial paper,  that ' '  strictly  speaking,  a  bill  of  lading  is  an 
ordinary  contract,  which  by  the  early  law  was  not  assign- 
able, but  the  exigencies  of  trade,  coupled  with  the  principles 
which  protect  innocent  purchasers  for  value  who  had 
bought  this  evidence  or  symbol  of  property,  gave  to  it  the 
capacity  of  transferring  the  right  of  property.  "^^^ 

The  Uniform  Bills  of  Lading  Law  has  now  been  adopted 
by  twelve  of  the  States  and  Territories,  and  will  probably 
be  adopted  by  others.^^^ 

The  three  acts  just  considered  are  important.  Credit  is 
to-day  the  medium  of  exchange  by  which  ninety-five  per 
cent  of  the  business  of  the  world  is  transacted.  That  the 
law  governing  all  instruments  of  credit  should  be  universal 
throughout  the  commercial  world  would  seem  to  be  ap- 
parent. These  acts,  therefore,  adopt  the  mercantile  theory 
of  credit  and  give  negotiability  to  bills,  drafts,  notes, 
checks,  warehouse  receipts,  and  bills  of  lading  when  to 
*' order".  The  "order  bill  of  lading"  plays  a  peculiarly 
important  part  in  American  domestic  and  foreign  com- 
merce—  being  in  the  best  sense  a  ''commodity  currency", 
because  usually  accompanied  by  a  draft  wherein  is  ex- 
pressed a  unit  of  value. 

"These  commercial  acts",  says  one  writer,  "have  been 

16 


242  ECONOMIC  LEGISLATION  IN  IOWA 

construed  in  harmony  with  actual  business  usages  and  cus- 
toms where  such  usages  and  customs  rest  on  a  sound  eco- 
nomic principle  and  are  not  contrary  to  ethics  underlying 
all  American  jurisprudence.     .     .     . 

"They  wisely  do  not  attempt  a  complete  codification  of 
the  law  upon  each  subject  to  which  they  pertain,  but  give 
room  for  the  growth  of  new  uses  and  customs  by  providing 
that  'in  cases  not  provided  for  in  this  act  the  rules  of  law 
and  equity  including  the  law  merchant  ....  shall 
govern '."*^^ 

Trade  Mark  Laws: — The  importance  and  use  of  trade 
marks  have  increased  greatly  during  the  last  quarter  of  a 
century  and  some  laws  have  been  developed  for  their  pro- 
tection. The  first  Iowa  law  of  this  nature  is  found  in  the 
Code  of  1851,  which  prohibited  the  counterfeiting  of  the 
mark  of  another  and  provided  a  penalty  for  the  use,  with 
intent  to  defraud,  of  any  box  or  container  marked  or 
branded  by  another.^^* 

In  1892  a  more  comprehensive  act  was  passed  to  protect 
persons,  associations  and  unions  of  workingmen,  and  others 
in  their  labels,  trade  marks,  and  forms  of  advertising.  This 
law  provided  for  the  registration  of  trade  marks  with  the 
Secretary  of  State,  and  prohibited  the  unauthorized  use  of 
registered  marks  under  penalty,'*^^  Two  years  later  per- 
sons engaged  in  bottling  beverages  were  authorized  to 
adopt  trade  marks  and  have  them  registered  and  pro- 
tected.^i*^ 

In  1911  the  Thirty-fourth  General  Assembly  provided  for 
the  adoption  of  a  trade  mark  for  Iowa  manufactured  prod- 
ucts, and  authorized  the  organization  of  the  Iowa  State 
Manufacturers'  Association.  A  board  of  awards  was  to  be 
appointed  by  the  association  for  the  purpose  of  establishing 
uniform  regulations  and  to  grant  to  Iowa  manufacturers 
conforming  to  such  regulations  the  right  to  use  the  label  or 


TRADE  AND  COMMERCE  243 

trade  mark  adopted.  The  board  was  to  make  requirements 
as  to  the  good  quality  of  products,  both  as  to  materials  and 
workmanship  and  to  fix  a  charge  to  be  paid  by  the  manu- 
facturer for  the  use  of  the  label.  The  declared  purpose  of 
the  act  was  "to  make  the  said  label  or  trade-mark  stand  for 
Iowa  made  goods,  and  also  of  goods  of  quality  and  merit. ' ' 
In  1915  a  trade  mark  was  adopted  for  Iowa  dairy  prod- 
ucts.^" 

LAWS  TO  PROTECT  CREDITORS 

Legislation  of  this  type  contains  no  new  principle:  it  is 
simply  a  codification  of  the  old  Common  Law  rules.  It  is 
true,  however,  that  in  the  process  of  codification  the  rules 
themselves  have  undergone  some  change.  The  movement 
is  toward  better  protection  for  laborers  and  other  people  of 
small  means.  Two  groups  of  laws  will  be  treated  in  this 
connection:  laws  relating  to  mechanics'  liens  and  those  re- 
lating to  assignments  for  the  benefit  of  creditors. 

Mechanics'  Liens: — A  mechanics'  lien  is  a  lien  which 
operates  by  statute  to  secure  the  payments  due  to  persons 
who  do  work  or  furnish  materials  in  the  construction  of 
buildings  or  other  improvements.  Such  a  lien  attaches  not 
only  to  the  building  or  improvement  itself,  but  also  to  the 
land  upon  which  it  is  situated.^^^  Legislation  upon  this  sub- 
ject was  begun  when  the  Iowa  country  was  a  part  of  Mich- 
igan Territory.  It  continued  to  be  enacted  down  through 
the  period  when  Iowa  was  a  part  of  Wisconsin  Territory.^^** 

Very  soon  after  the  Territory  of  Iowa  was  created,  how- 
ever, the  First  Legislative  Assembly  passed  an  act  that 
superseded  the  former  laws.  This  act,  which  was  approved 
on  December  17,  1838,  secured  payment  for  work  done  or 
material  furnished  under  contract  with  the  owner  of  any 
real  estate  *'for  the  erecting  or  repairing  any  house,  or 
other  building,  mill,  or  machinery  of  any  description  what- 


244  ECONOMIC  LEGISLATION  IN  IOWA 

ever,  or  their  appurtenances,  or  for  furnishing  labor  or 
materials  for  the  purposes  aforesaid",  by  a  lien  upon  the 
building  and  its  appurtenances  and  upon  the  lot  or  tract  of 
land  upon  which  the  building  was  erected.  Moreover,  the 
benefits  of  the  act  were  extended  to  persons  employed  on 
mineral  lands.  An  amendment  in  1840  changed  the  pro- 
cedure in  enforcing  the  lien;  and  in  1843  the  laws,  with 
some  slight  changes,  were  combined  into  one  statute. ^^^ 

The  law  of  mechanics'  liens  as  it  appeared  in  the  Code  of 
1851  contained  some  additions  and  changes.'*-^  Thus  under 
the  provisions  of  this  code  every  person  who  had  furnished, 
under  contract  with  the  owner  of  any  land,  work  or  material 
used  thereon  was  given  a  lien  upon  the  land  and  the  build- 
ing for  the  amount  due  him  ' '  against  all  persons  except  in- 
cumbrancers by  judgment  rendered,  and  by  instrument 
recorded,  before  the  commencement  of  the  work  or  the  fur- 
nishing of  the  material."  The  terms  ''owner"  and  ''build- 
ing" were  defined.  Sub-contractors  were  given  a  lien 
against  the  principal,  to  be  enforced  by  the  garnishment  of 
the  principal's  claims  in  the  hands  of  the  owner  of  the  im- 
proved land.  The  real  estate  subject  to  lien  was  limited  to 
one-half  acre  in  town  property  and  to  two  acres  in  any  case. 
The  taking  of  collateral  security  on  the  same  contract  for- 
feited all  rights  to  a  mechanics'  lien.  No  mention  was  made 
of  the  former  miner's  lien,  but  the  benefits  of  the  law  were 
extended  to  persons  furnishing  labor  or  material  for  the 
construction  of  any  bridge,  or  railroad,  or  other  work  of 
internal  improvement.  The  judicial  procedure  for  enforc- 
ing the  lien  was  also  rewritten  and  made  more  explicit. 

The  law  as  it  was  written  in  the  Code  of  1851  did  not  long 
remain  unchanged.  Amendments  were  made  in  1857  and 
1858  which  related  to  the  filing  of  claims  for  liens  and  to  the 
extension  of  the  benefits  of  the  law  to  persons  furnishing 
materials  to  contractors.  In  1860  the  law  was  rewritten  so 
that  its  benefits  would  extend  to  every  person  who  should 


TRADE  AND  COMMERCE  245 

perform  work  or  furnish  material  for  any  building  or  other 
improvement  upon  any  land,  by  contract  with  the  owner, 
his  agent,  or  trustee,  contractor,  or  sub-contractor.  Sub- 
contractors and  others  who  did  not  have  contracts  directly 
with  the  owner  of  the  land,  his  agent,  or  trustee  were  re- 
quired, however,  to  give  notice  to  the  owner  of  their  inten- 
tion to  furnish  labor  or  material.  Failure  to  give  such 
notice  did  not  forfeit  the  lien,  but  it  operated  to  make  it 
less  certain.  Liens  were  also  made  transferable  and  were 
exempted  from  execution  when  for  labor  only.  The  acre- 
age limitation  was  removed  and  provision  made  to  insure 
the  lien  in  case  the  person  making  an  improvement  was  a 
lease-holder  and  not  the  owner  of  the  land  improved.^^^ 

During  the  period  from  1860  to  1874  amendatory  acts 
were  passed  relating  to  the  filing  of  claims,  the  service  of 
notice,  the  time  and  manner  of  beginning  action,  the  limit 
of  liability,  and  the  better  security  of  the  rights  of  the 
employees  of  sub-contractors.^^^ 

In  1876  all  the  existing  statutes  relating  to  mechanics' 
liens  were  repealed  and  a  new  law  enacted,  which  was  for 
the  most  part  a  collection  and  rearrangement  of  the  pre- 
vious law  and  its  several  amendments.  There  have  been 
additions  to  the  law  since  that  time,  but  few  important 
alterations  have  been  made.  Further  protection  was  given 
to  sub-contractors  in  1884.  The  provision  for  the  protec- 
tion of  miners  was  revived  in  1890;  and  persons  doing 
grading  work  on  land  or  lots  were  given  the  benefit  of  the 
law  in  1894.  No  changes  of  importance  appear  in  the  Code 
of  1897.  The  liability  of  the  owner  to  the  original  con- 
tractor and  to  sub-contractors  was  more  clearly  defined, 
and  the  claims  of  sub-contractors  for  the  construction  of 
drainage  ditches  were  secured  in  1913.  And  in  1915  a  slight 
change  was  made  in  relation  to  the  serving  of  notice  by  a 
sub-contractor.'*^^ 

The  mechanics'  lien  is  allowed  only  for  buildings,  erec- 


246  ECONOMIC  LEGISLATION  IN  IOWA 

tions,  or  other  improvements  upon  land  which  are  of  such  a 
nature  as  to  become  a  part  of  or  an  addition  to  the  land.  A 
lien  will  operate  only  for  work  done  or  materials  furnished 
by  virtue  of  a  contract,  express  or  implied.  The  right  to  a 
mechanics '  lien  extends  to  every  person  who  brings  himself 
within  the  provisions  of  the  statute.  Claims  for  liens  must 
be  filed  within  a  certain  period  of  time  in  order  to  receive  a 
preferred  claim.  When  properly  filed  a  mechanics'  lien  is 
a  preferred  claim.  As  between  persons  claiming  mechan- 
ics '  liens  upon  the  same  property  the  priority  is  determined 
by  the  order  in  which  the  claims  were  filed.  In  order  to 
enforce  a  mechanics'  lien  action  must  be  brought  within 
two  3'ears  from  the  expiration  of  the  period  legally  per- 
mitted for  filing  claims. ^-^ 

''Builders  and  material  men  belong  to  a  class  of  creditors 
whose  rights  accrue  from  time  to  time  and  who  cannot  well 
avail  themselves  of  the  ordinary  remedies  for  the  collection 
of  their  claims.  The  preference  given  them  rests  on  equita- 
ble grounds.  "^2^ 

Assignments  for  the  Benefit  of  Creditors: — It  is  not  the 
purpose  to  treat  of  assignments  in  general  in  this  connec- 
tion but  only  of  assignments  for  the  benefit  of  creditors, 
that  is,  the  assignment  or  transfer  of  property  to  a  trustee 
who  converts  the  property  into  money  and  pays  the  debts 
of  the  assignor.  Any  person,  partnership,  or  corporation 
has  a  legal  right  to  make  an  assignment  of  property.  This 
action  is  not  usual,  however,  except  in  case  of  insolvency. 
A  solvent  person  may  assign  a  part  or  all  of  his  property 
for  the  benefit  of  his  creditors,  and  an  insolvent  person  may 
so  assign  a  part  of  his  property.  But  if  an  insolvent  person 
attempts  to  assign  all  of  his  property  for  the  benefit  of  his 
creditors  the  law  declares  what  must  be  done  in  order  to 
make  such  an  assignment  valid,  and  it  controls  the  assignee 
in  the  sale  of  the  property  and  in  the  distribution  of  the 
proceeds  among  the  creditors.^" 


TRADE  AND  COMMERCE  247 

The  first  legislation  on  this  subject  appears  in  the  law  as 
written  in  the  Code  of  1851,  which  permitted  no  general  as- 
signment of  property  by  an  insolvent  or  any  person  con- 
templating insolvency  unless  such  assignment  was  made  for 
the  benefit  of  all  the  creditors  in  proportion  to  the  amount 
of  their  respective  claims.  The  assent  of  the  creditors  in 
case  of  an  unconditional  assignment  for  their  benefit  was 
declared  to  be  presumed.*^^ 

An  extensive  addition  was  made  to  the  above  provisions 
by  an  act  passed  in  1857.  This  law,  which  remains  almost 
unchanged  upon  the  statute  books,  defined  the  procedure  in 
case  of  assignment.  Provision  was  made  for  an  inventory 
of  the  debtor's  property,  for  notice  to  be  given  to  creditors, 
for  the  filing  of  the  inventory  with  the  clerk  of  the  district 
court,  for  the  filing  of  the  claims  of  creditors,  for  excep- 
tions, and  for  the  division  of  the  assets  among  the  creditors. 
The  district  court  was  authorized  to  supervise  the  assignor 
and  assignee.  Additional  inventories  of  property  were  per- 
mitted. Debts  not  yet  due,  as  well  as  those  due,  were  to  be 
given  consideration.  The  assignee  was  given  full  power  to 
dispose  of  all  the  property  subject  to  the  direction  of  the 
district  court.  Finally,  provision  was  made  for  the  ap- 
pointment of  a  new  assignee  in  case  any  assignee  should 
die  before  the  complete  execution  of  his  trust.^^^ 

The  few  changes  -that  have  been  made  in  the  law  may  be 
briefly  indicated.  Taxes  were  declared  to  have  a  prior  right 
to  other  claims  in  1876.  Debts  due  for  personal  service 
were  given  a  preferred  claim  in  1884.  In  1886  provision 
was  made  for  the  removal  of  an  assignee  upon  application 
of  two-thirds  of  the  creditors  and  for  the  appointment  of 
one  suitable  to  them.  The  time  for  the  division  of  the 
property  was  also  limited.  In  1890  claims  for  wages  owing 
for  labor  were  given  priority  over  other  claims  not  having 
special  preferment.^^*^  An  important  measure  of  1906  pro- 
vides that  no  sale  or  assignment  of  wages  by  the  head  of  a 


248  ECONOMIC  LEGISLATION  IN  IOWA 

family  ''shall  be  of  any  validity  whatever  unless  the  same 
be  evidenced  by  a  written  instrument  and  if  married  unless 
the  husband  and  wife,  sign  and  acknowledge  the  same  joint 
instrument  before  an  officer  authorized  to  take  acknowl- 
edgments."^^^ 

MISCELLANEOUS  LAWS  EELATING  TO  TRADE  AND  COMMERCE 

Laws  relating  to  Money  of  Account  and  Interest: — The 
rate  of  interest  that  could  be  legally  collected  was  first  de- 
termined by  an  act  passed  in  1838.  This  law  permitted 
interest  at  the  rate  of  six  per  cent  on  all  debts  after  they 
were  due,  and  allowed  a  rate  not  to  exceed  twenty  per  cent 
on  specific  contract.  Usury  was  prohibited  and  provision 
was  made  for  punishing  any  violation  of  the  law.  By  an 
act  of  1843  the  maximum  rate  allowable  in  contracts  was 
reduced  to  ten  per  cent,  and  provision  was  made  under 
which  persons  paying  more  could  recover. ^^^ 

The  Code  of  1851  declared  the  money  of  account  of  this 
State  to  be  the  dollar,  the  cent,  and  the  mill.  The  legal  rate 
of  six  per  cent  was  continued,  but  no  maximum  was  set  for 
written  contracts  except  that  a  higher  rate  than  ten  per 
cent  could  not  be  recovered  by  judgment.  The  Fourth  Gen- 
eral Assembly  rewrote  the  law  regulating  interest  on 
money.  The  same  rates  were  retained  as  had  been  pre- 
\dously  allowable,  but  several  additional  articles  attempted 
to  prohibit  unlawful  interest. ^^^ 

The  maximum  legal  rate  was  reduced  to  eight  per  cent  in 
1890 ;  and  no  further  changes  of  importance  were  made  in 
the  law  until  in  1915  when  the  so-called  loan  shark  bill  was 
passed.  This  law  attempts  to  prohibit  any  one  from  charg- 
ing a  greater  rate  of  interest  than  two  per  cent  per  month, 
but  it  does  not  authorize  a  higher  rate  than  is  now  provided 
by  law.'*-^^  The  law  is  not  clear  and  has  not  yet  been  inter- 
preted by  the  courts,  so  that  it  is  not  possible  to  know 
whether  it  will  accomplish  the  purpose  for  which  it  was 
enacted. 


TRADE  AND  COMMERCE  249 

Tender: — The  law  defining  and  regulating  tender  re- 
mains in  substance  as  it  appeared  in  the  Code  of  1851,  de- 
claring that  an  offer  made  in  writing  and  not  accepted  is 
the  equivalent  to  actual  tender.  Inspection  must  be  allowed 
on  request,  and  the  receiver  must  make  his  objections,  if  at 
all,  at  the  time  the  tender  is  made.  The  person  making  the 
tender  may  demand  and  receive  a  receipt  before  making  the 
actual  transfer. ^^^ 

Sureties: — The  law  relating  to  sureties  also  remains 
upon  the  statute  books  just  as  it  was  adopted  in  the  Code  of 
1851.  Any  person  bound  as  surety  may  require  the  cred- 
itors of  his  principal  to  sue  or  allow  the  surety  to  sue  when 
it  appears  that  the  principal  may  leave  the  State  without 
discharging  his  contract.  Upon  a  creditor's  refusal  to  sue 
or  allow  the  surety  to  do  so  the  surety  is  discharged.  Upon 
suit  by  a  surety  he  is  required  to  pay  costs  of  the  suit.  The 
provisions  of  the  law  extend  to  the  executor  of  a  deceased 
surety,  and  to  the  executor,  endorsee,  and  assignee  of  the 
creditor,  but  not  to  official  bonds  of  public  officers,  execu- 
tors, or  guardians. ^^^ 

Miscellaneous: — Fragmentary  acts  relating  to  different 
phases  of  trade  and  commerce  have  been  passed  from  time 
to  time.  Much  of  this  legislation  has  been  of  only  minor 
importance  and  there  has  been  no  plan  or  system  in  its 
enactment.  It  has  been  of  some  importance,  however,  and 
some  idea  of  its  extent  and  variety  should  be  indicated  in 
this  connection. 

The  State  legislature  has  passed  laws  upon  different  oc- 
casions for  the  prevention  of  unfair  discrimination  in  com- 
merce and  trade,  for  the  prevention  of  pools  and  trusts,  and 
for  the  regulation  of  the  sale  and  transfer  of  stored  grain.^^"^ 
These  laws  have  been  noted  at  greater  length  in  other  con- 
nedtions. 


250  ECONOMIC  LEGISLATION  IN  IOWA 

One  of  the  most  important  recent  measures  passed  which 
affects  trade  and  commerce  is  the  Bulk  Sales  Law  of  1911  — 
rewritten  in  1917  — ■  which  prohibits  any  person  from  selling 
his  stock  of  merchandise  in  bulk  without  giving  proper 
notice  of  such  intention  to  his  creditors. ^^® 

Cities  have  been  given  broad  powers  in  establishing  and 
regulating  markets  within  their  limits.  Regulations  have 
been  prescribed  from  time  to  time  in  relation  to  peddlers 
and  peddling,  and  to  auctioneers  and  auctioneering.  Mills 
and  millers  have  also  been  regulated  in  the  same  manner. *^^ 

In  memorials  and  joint  resolutions  to  Congress  the  State 
legislature  has  reflected  the  sentiment  of  the  people  of  the 
State  toward  certain  economic  policies  of  the  National  gov- 
ernment. Thus  Congress  has  been  asked  to  repeal  the  duty 
on  sugar  and  molasses.  It  has  been  asked  for  free  lumber 
and  jute  and  sisal  grass,  for  a  lower  duty  on  steel  and  wire, 
and  for  the  defeat  of  the  Wilson  Tariff  Bill.  Another  group 
of  joint  resolutions  relates  to  patents.  Congress  has  been 
urged  not  to  extend  the  patents  on  certain  kinds  of  ma- 
chinery and  to  amend  the  patent  laws  in  such  a  manner  as 
to  remove  the  barbed-wire  patent  extortion.*'**^ 

Other  joint  resolutions  urged  Congress  to  establish  cus- 
tom houses  in  Iowa,  to  reduce  the  rate  of  ocean  postage,  to 
regulate  interstate  commerce  and  to  establish  an  interstate 
commerce  commission,  to  increase  the  amount  of  currency, 
and  to  amend  the  bankrupt  law.  It  is  also  of  interest  to 
note  that  during  the  period  of  settlement  there  were  no 
fewer  than  eighty-three  memorials  and  joint  resolutions  to 
Congress  in  relation  to  increased  mail  facilities  in  lowa.^*^ 


XI 

LABOR  LEGISLATION ^^2 

The  term  labor  legislation  as  used  in  this  connection  in- 
cludes all  statutory  provisions  enacted  for  the  purpose  of 
regulating  the  conditions  of  employment  and  for  the  pro- 
tection of  wage-earners  from  exploitation.  The  need  of 
such  legislation  is  recognized  wherever  the  capitalistic  sys- 
tem of  production  is  in  vogue.  Iowa  is  still  a  predom- 
inantly agricultural  State,  and  the  capitalistic  system  is  yet 
in  an  early  stage  of  development.  This  means  that  the 
greater  part  of  the  laboring  population  consists  of  inde- 
pendent producers  instead  of  wage-laborers.  It  is  not  sur- 
prising, therefore,  that  labor  legislation  in  Iowa  has  not 
had  a  rapid  development. 

WAGE  LEGISLATION 

Every  laborer  should  be  assured  of  the  prompt  and  full 
payment  of  his  wages ;  and  he  should  be  protected  against 
imposition  and  oppression  by  unscrupulous  creditors. 
Wage  laws  seek  to  secure  these  rights  to  the  laborer,  and 
the  payment  of  wages  is  secured  by  stronger  legal  guaran- 
tees than  are  ordinary  debts.  Such  laws  seek  also  to  enable 
the  laborer  to  maintain  a  cash  system,  and  to  shield  him 
from  the  extortion  of  the  money-lender. 

Legislation  on  the  subject  of  mechanics'  liens  began  be- 
fore Iowa  was  made  a  separate  Territory  and  has  continued 
down  to  the  present  day.  The  development  of  this  legisla- 
tion has  been  treated  in  another  connection  and  need  not  be 
discussed  here.^^^  It  is  proper  to  note,  however,  that  these 
laws  have  been  quite  effective  in  securing  the  payment  of 
wages  to  the  laborer. 

251 


252  ECONOMIC  LEGISLATION  IN  IOWA 

Preference  is  given  to  laborers  for  claims  for  wages  in 
the  settlement  of  the  estates  of  insolvent  debtors.  More- 
over, wages  have  been  exempt  from  attachment  since  1851. 
Frequent  attempts  have  been  made  to  have  such  exemption 
removed,  but  without  success.  Laws  have  long  been  on  the 
statute  books  to  protect  the  rights  of  minors  and  women  in 
the  matter  of  wages.  In  1915  a  law  was  enacted  which  at- 
tempts to  prevent  extortion  by  loan  sharks,  but  its  provi- 
sions are  not  clearly  stated  and  there  is  some  doubt  as  to 
their  meaning.  The  law  aims  to  prohibit  anyone  from 
charging  a  greater  interest  rate  than  two  per  cent  a  month, 
but  it  does  not  authorize  a  higher  rate  than  is  now  provided 
by  law.^^^ 

After  the  amount  and  security  of  wages,  the  manner  and 
frequency  of  their  payment  are  of  great  importance  to  the 
wage-earner.  It  was  the  common  practice  for  mine  oper- 
ators and  owners  to  pay  miners'  wages  in  truck  and  rent 
until  1888,  when  a  law  was  passed  which  requires  employers 
to  pay  in  lawful  money  the  wages  of  workmen  employed  in 
mines.  Since  1894  miners  must  be  paid  semi-monthly.  In 
1915  an  act  was  passed  which  requires  the  semi-monthly 
payment  of  wages  to  railroad  employees.  Finally,  the 
Thirty-fifth  General  Assembly  established  a  minimum  wage 
for  public  school  teachers. ^^^ 

CONVICT  LABOE  LEGISLATION 

Steps  were  taken  by  the  Territory  of  Michigan  to  provide 
labor  for  convicts  as  early  as  1819.  The  law  adopted  at 
that  time  was,  with  slight  change,  in  force  when  Iowa  be- 
came a  separate  Territory  in  1838.^^^  The  First  Legislative 
Assembly  of  the  new  Territory  passed  an  act  providing  for 
the  erection  of  a  penitentiary.  The  prisoners  were  to  be' 
employed  in  the  construction  of  the  buildings  and  were  to 
be  later  employed  in  the  manufacture  of  articles  for  the 
market  under  the  direction  of  the  warden.^^"^ 


LABOR  LEGISLATION  253 

The  warden  of  the  penitentiary  was  authorized  to  hire 
out  the  convicts  for  work  in  the  town  of  Fort  Madison  in 
1841.^'*®  At  that  time  it  was  the  general  belief  that  a  prison 
should  be  self-sustaining.  Since  the  Iowa  penitentiary  was 
a  financial  burden  and  not  self-supporting  it  was  leased  to  a 
private  person  in  1846  for  a  term  of  three  years.^***  Upon 
the  expiration  of  this  lease,  however,  the  penitentiary  was 
again  placed  under  the  control  of  public  officers  who  di- 
rected the  employment  of  the  prisoners.^^*^ 

In  1854  the  State  adopted  the  contract  system  of  dispos- 
ing of  the  labor  of  its  prisoners. '^^^  This  system  was  re- 
tained until  1915,  when  provision  was  made  for  the  employ- 
ment of  prisoners  only  on  State  account  after  the  then 
existing  contracts  had  been  completed.^^^  The  contract 
system  and  the  public  account  system  have  long  been  used 
in  this  State.  Under  the  contract  system  the  convicts  were 
hired  out  to  different  manufacturing  concerns,  but  the  State 
was  never  able  to  get  as  much  for  the  labor  of  convicts  as  it 
cost  to  maintain  them.  Moreover,  the  convicts  employed 
under  contract  were  rarely  taught  any  useful  trade.  The 
contract  system  was  opposed  for  many  years  by  labor 
organizations  and  by  the  class  of  citizens  who  hope  to  see 
the  prisoners  reformed.  It  was  never  satisfactory  and  was 
finally  discarded  in  1915. 

The  public  account  plan  has  been  used  to  some  extent  and 
it  seems  to  be  a  better  and  more  just  system.  The  move- 
ment toward  road  working,  the  construction  of  public 
works,  and  the  manufacture  of  articles  needed  by  the  in- 
mates of  the  various  charitable  and  correctional  institu- 
tions supported  by  the  State  is  being  received  with  more 
favor,  but  the  question  of  the  proper  disposal  of  prison 
labor  remains  unsolved  in  this  State. 


254  ECONOMIC  LEGISLATION  IN  IOWA 

MINE  LABOR  LAWS 

Coal  mining  is  the  most  important  mining  industry  in  the 
State.  The  annual  output  of  this  product  is  about  7,000,000 
tons,  and  the  industry  gives  employment  to  approximately 
17,000  men.'*^^  The  value  of  the  coal  produced  in  1912  was  a 
little  more  than  $13,000,000 ;  while  that  of  all  the  other  min- 
eral products  of  the  State  for  the  same  year  was  about 
$10,000,000.'*5^ 

Except  for  the  miners'  lien  law,  which  was  in  force  from 
1838  to  1851,^^^  mine  labor  legislation  did  not  begin  in  Iowa 
until  1872.  Since  that  time,  however,  mine  labor  laws  have 
grown  in  volume  and  importance  until  they  now  form  the 
largest  and  most  complete  body  of  laws  applicable  to  any 
one  group  of  laborers  in  this  State.  Mining  is  an  extra- 
hazardous occupation.  It  affords,  moreover,  peculiar  op- 
portunities for  the  exploitation  of  the  laborers  engaged 
therein.  Accordingly,  two  groups  of  mine  labor  laws  have 
been  developed.  One  group  seeks  to  protect  the  lives  and 
limbs  of  miners ;  the  other  group  seeks  to  secure  to  miners 
the  full  control  of  their  wages.^^® 

The  law  of  1872  was  a  brief  act,  relating  only  to  the  in- 
spection of  mines  by  county  authority  and  to  the  liability  of 
mine-owners  for  injuries  to  employees.  Two  years  later  a 
substitute  for  this  act  was  passed.  It  was  longer  than  the 
first  act  and  contained  many  additional  provisions.  It  re- 
tained the  system  of  county  inspection,  but  seems  never  to 
have  been  enforced. ^^'^ 

A  system  of  State  inspection  of  mines  was  inaugurated  in 
1880,  when  the  earlier  county  system  was  abandoned.'*^^ 
This  act  provided  for  a  State  Mine  Inspector  to  be  ap- 
pointed by  the  Governor  and  Senate.  The  inspector  so 
appointed  was  to  have  "a  theoretical  and  practical  knowl- 
edge of  the  different  systems  of  working  and  ventilating 
coal  mines,  and  of  the  nature  and  properties  of  the  noxious 
and  poisonous  gases  of  mines,  and  of  mining  engineering." 


LABOR  LEGISLATION  255 

The  inspector  was  to  be  appointed  for  a  period  of  two  years 
at  a  salary  of  $1500  a  year.  He  must  not  while  in  office  have 
an  interest  in  any  mine.  He  must  examine  all  the  mines  of 
the  State  as  often  as  his  duties  would  permit ;  and  he  could 
inspect  any  mine  and  its  works  and  machinery  at  all  reason- 
able times.  He  was  provided  with  an  office  and  furnished 
with  all  necessary  instruments.  He  must  enforce  the  law 
and  make  annual  reports  to  the  Governor.  Finally,  he  was 
subject  to  removal  for  malfeasance  in  office  or  gross  neglect 
of  duty. 

Mine-owners  were  required  to  furnish  means  for  inspec- 
tion and  to  report  any  loss  of  life  in  their  mines.  They  must 
make  accurate  maps  of  the  working  of  each  mine  and  pro- 
vide two  separate  outlets  in  every  mine  in  which  more 
than  fifteen  persons  were  employed.  They  must  provide 
speaking  tubes  and  safety  gates  in  all  shafts  and  brakes 
and  dogs  on  drums  and  cars,  and  employ  only  competent 
engineers.  They  were  also  required  to  supply  timber  for 
props  where  necessary.  All  of  the  mechanical  appliances 
of  the  mine  were  subject  to  the  approval  of  the  inspector. 

The  law  of  1874  had  prohibited  the  employment  in  mines 
of  boys  under  ten  years  of  age  and  of  all  females.  The  age 
limit  was  raised  to  twelve  years  by  the  act  of  1880. 

Miners  were  given  the  right  to  maintain  a  check-weigh- 
man.  In  case  any  mine-owner  failed  to  comply  with  the 
provisions  of  the  act  he  could  be  enjoined  from  operating 
his  mine.  It  was  also  made  a  misdemeanor  for  any  un- 
authorized person  to  injure  or  interfere  in  any  way  with 
any  of  the  safety  appliances  or  machinery.  The  provisions 
of  the  law  were  not  applicable  to  mines  in  which  not  more 
than  fifteen  persons  were  employed. 

The  act  of  1880  was  repealed  in  1884  and  in  its  place  there 
was  enacted  a  substitute  law  which  embraced  all  the  provi- 
sions of  the  former  law  with  several  additions.  The  inspec- 
tor's salary  was  increased  and  more  detailed  provisions 


256  ECONOMIC  LEGISLATION  IN  IOWA 

were  made  for  escape  shafts  and  safety  appliances.  Only 
mines  operated  by  slopes  or  drift  openings  where  not  more 
than  five  persons  were  employed  were  exempt  from  the  pro- 
visions of  the  act.^^^ 

The  one  inspector  could  not  visit  the  five  hundred  coal 
mines  of  the  State  often  enough  to  secure  compliance  with 
the  law ;  and  so  in  1885  Inspector  Wilson  recommended  that 
provision  be  made  for  one  chief  mine  inspector  and  two 
assistants. ^^^  Such  a  plan  would  have  given  unity  to  the 
work  of  mine  inspection,  but  it  was  not  adopted.  Instead, 
provision  was  made  for  the  appointment  of  three  inspectors 
of  equal  rank,  to  be  assigned  to  districts  by  the  Governor.^^^ 
The  qualifications  and  duties  of  the  inspectors  remained  as 
under  the  law  of  1880. 

In  1888  an  attempt  was  made  to  put  the  office  of  mine  in- 
spector on  a  merit  basis  by  the  creation  of  a  permanent 
board  of  examiners.  Candidates  for  the  office  were  to  be 
examined  by  this  board,  and  appointment  must  be  made 
from  among  persons  holding  certificates  of  competency 
from  the  board.'*^^  The  jurisdiction  of  the  board  of  exam- 
iners was  extended  in  1900  to  the  examination  of  mine  fore- 
men, pit  bosses,  and  hoisting  engineers  working  in  mines 
whose  daily  output  was  above  twenty-five  tons,  and  such 
workmen  were  required  to  possess  certificates  of  compe- 
tency before  they  could  be  employed.  The  qualifications  of 
the  members  of  the  board  were,  moreover,  made  more 
stringent ;  and  in  1911  the  board  was  given  power  to  revoke 
the  certificates  of  mine  employers  who  refuse  to  obey  the 
orders  of  the  mine  inspector.^^^ 

The  salary  of  the  State  Mine  Inspectors  has  been  in- 
creased from  time  to  time;  they  now  receive  $1800  a  year, 
with  a  traveling  allowance  of  $750  and  fifteen  dollars  a 
month  for  office  expenses.  Mine  inspectors  were  at  first 
appointed  for  a  term  of  two  years.  In  1911  the  term  was 
changed  to  three  years.    Two  years  later  the  period  of  in- 


LABOR  LEGISLATION  257 

cumbency  was  made  six  years,  but  in  1915  the  term  was 
reduced  to  four  years.  Inspectors  are  removable  by  the 
Governor  upon  the  recommendation  of  the  board  of  exam- 
iners.^^^ 

Since  1902  the  inspectors  have  been  required  to  inspect, 
at  least  once  in  six  months,  every  mine  having  a  daily  out- 
put of  fifty  tons  or  more  of  coal ;  and  since  that  time  their 
duties  have  been  extended  to  include  the  determination  of 
the  fitness  of  shot  examiners,  the  enforcement  of  the  child 
labor  laws  in  mines,  and  the  inspection  of  gypsum  mines. ^^^ 
In  addition  to  the  changes  noted  several  fragmentary  acts 
were  passed  during  the  period  from  1888  to  1911.  These 
acts,  among  other  things,  prohibited  the  sale  of  impure  oil 
in  coal  mines.  They  changed  and  amended  the  safety  pro- 
visions relative  to  air  currents  and  the  storage  of  powder 
in  mines  and  the  provisions  relative  to  the  competency  of 
employees  in  mines.^^^ 

A  very  important  group  of  laws  of  this  same  period  at- 
tempted to  prevent  the  exploitation  of  miners.  Thus  miners 
were  given  the  benefit  of  the  mechanics'  lien  law  in  1890. 
The  right  of  miners  to  appoint  a  check-weighman,  who  is 
paid  by  themselves  and  who  has  power  to  examine  the 
scales  and  apparatus  used  for  weighing  coal  and  to  see  each 
miner's  coal  weighed  and  recorded,  was  first  secured  to  the 
miners  in  1880.  Amendatory  laws  required  the  use  of 
standard  scales  and  their  inspection  by  the  mine  inspectors. 
Screen  laws  have  been  enacted,  but  they  are  not  satisfac- 
tory to  the  miners.  A  truck  law  was  enacted  in  1888  which 
aims  to  free  the  miner  from  the  obligation  to  spend  his 
money  in  a  company  store.  In  1894  a  law  was  passed  which 
requires  the  payment  of  miners  every  two  weeks  and  a  later 
amendment  prohibits  the  withholding  of  wages  beyond  a 
short  period  after  they  are  earned.^^"^ 

In  1911  the  Thirty-fourth  General  Assembly  passed  a 
more  comprehensive  act  pertaining  to  mines  and  mining 

17 


258  ECONOMIC  LEGISLATION  IN  IOWA 

than  had  before  been  enacted.  This  statute,  which  still  con- 
stitutes the  law  in  this  State,  is  defined  in  the  title  as  ''re- 
lating to  mines  and  mining,  safety  appliances,  means,  meth- 
ods and  equipments  thereof,  the  appointment  of  mine 
inspectors,  defining  their  powers  and  duties,  requiring  sur- 
veys of  mines  and  records  to  be  kept  thereof,  requiring 
escape  and  air  shafts  and  equipments  and  location  thereof, 
fire  proof  buildings  for  boiler  and  engine  rooms,  safe  and 
convenient  traveling  ways  and  equipments  thereof,  the 
amount  of  ventilation,  stoppings  and  breaks-through, 
means  of  communication  from  top  to  bottom  of  shaft,  slope 
or  drift,  and  from  the  bottom  thereof  to  the  working  parts 
and  providing  safety  equipments  for  shafts,  slopes  or  drifts 
and  fixing  the  age  within  which  boys  may  work  in  the  mine, 
and  providing  for  the  safety  of  employes  where  explosives 
are  used,  the  location  of  stables,  gasoline  engines  and 
pumps,  and  the  revocation  of  certificates  of  mine  foreman 
in  certain  cases,  defining  the  duties  of  mine  foreman  and 
definition  of  mine  foreman,  the  duties  of  workmen  in  mines 
and  mining  and  defining  the  power  and  duties  of  mine  own- 
ers, lessees,  operator  and  person  in  charge,  the  character 
and  kind  of  illuminating  oils  and  other  substances  and  pro- 
viding penalties.  "^*^® 

The  portion  of  the  title  of  the  law  just  quoted  indicates 
something  of  the  inclusiveness  of  the  statute.  Many  of  the 
provisions  of  the  old  law  were  retained  mthout  change. 
Immediate  reports  of  accidents  were  required  ;^*^^  more  elab- 
orate provisions  were  made  in  regard  to  maps  of  mines ;  the 
provisions  regulating  escapes  were  prescribed  in  more  de- 
tail and  made  more  effective;  the  storing  of  explosives  in 
mines  was  more  stringently  regulated;  a  more  elaborate 
system  of  communication  was  required  to  be  installed  in 
mines ;  more  stringent  regulations  were  prescribed  in  rela- 
tion to  the  hoisting  machinery  and  the  safety  of  miners 
being  taken  into  or  out  of  the  mines;  and  inspectors  were 


LABOR  LEGISLATION  259 

given  broader  powers  in  requiring  safety  appliances.  The 
location  and  construction  of  boiler  and  engine  rooms  were 
regulated;  more  careful  regulation  of  blasting  was  pro- 
vided; and  other  protective  features  were  included.  Pen- 
alties were  prescribed  for  the  violation  of  the  different 
provisions  of  the  law.'*'^*' 

Practically  all  the  mine  labor  legislation  enacted  previous 
to  1913  was  applicable  only  to  coal  mines.  In  1913  a  regu- 
latory law  applicable  to  gypsum  mines  was  enacted.  This 
law  is  similar  to  the  laws  relating  to  coal  mines.  Indeed,  it 
contains  no  new  features  and  is  not  nearly  so  elaborate.^^^ 

RAILWAY  LABOR  LEGISLATION 

There  has  been  a  fearful  loss  of  life  and  limb  in  the  con- 
struction and  operation  of  railroads  in  this  as  well  as  in 
other  States.  The  heaviest  loss  has  fallen  upon  railroad 
employees,  and  especially  upon  train  crews.  It  would  ap- 
pear that  legislation  for  the  protection  of  the  employees  of 
railroads  should  be  directed  toward  securing  greater  safety 
in  the  operation  of  trains.  ^'lowa  laws  looking  to  this  end 
are  those  requiring  automatic  couplers  and  train  brakes, 
regulating  the  height  of  overhead  obstructions,  limiting  the 
hours  of  continuous  employment  for  certain  classes  of  rail- 
way operatives,  and  providing  for  the  investigation  and 
report  of  accidents  on  railways.  "^"^^  As  early  as  1851  the 
benefits  of  the  mechanics'  lien  laws  were  extended  to  rail- 
w^ay  employees  and  they  still  enjoy  those  benefits. ^'^^ 

To  the  use  of  the  old  style  link  and  pin  couplers  was  due 
thousands  of  injuries  and  deaths  to  railway  employees. 
Automatic  safety  couplers  were  invented  before  1885;  but 
it  was  not  until  1890  that  automatic  couplers  and  power 
brakes  were  required  by  law  in  this  State  to  be  placed  on 
cars  and  engines.  And  then  it  took  ten  years  to  get  all  the 
rolling  stock  equipped.^"^ 

Overhead  obstructions  were  for  many  years  a  source  of 


260  ECONOMIC  LEGISLATION  IN  IOWA 

danger  to  trainmen  and  many  accidents  occurred.  The  ex- 
tension of  telephone  lines  increased  this  danger,  but  no  leg- 
islative action  was  taken  to  prevent  such  obstructions  until 
1907.  In  that  year  the  State  Board  of  Railroad  Commis- 
sioners was  given  general  supervision  over  all  wires  cross- 
ing railroad  tracks  within  the  State.  The  commissioners 
were  required  to  prescribe  rules  and  regulations  for  the 
stringing  of  such  wires,  to  examine  those  already  strung, 
and  to  fix  a  minimum  height,  at  least  twenty-two  feet  above 
the  top  of  the  rails,  at  which  wires  may  lawfully  be  placed 
above  railroad  tracks, ^"^^ 

In  1907  the  General  Assembly  recognized  the  evil  effect  of 
excessive  hours  of  labor  for  railway  trainmen  and  made  an 
attempt  to  correct  it  by  legislation.  A  law  was  then  passed 
which  forbids  any  employee  engaged  in  the  operation  of 
trains  to  remain  on  duty  more  than  sixteen  consecutive 
hours,  or  to  perform  any  further  service  without  having 
had  at  least  ten  hours  for  rest.  It  also  prohibits  any  em- 
ployee from  being  on  duty  more  than  sixteen  hours  in  any 
consecutive  twenty-four  hours.  These  provisions  do  not 
apply,  however,  to  employees  of  sleeping  car  companies  or 
to  trainmen  engaged  in  protecting  life  and  property  in  case 
of  accident ;  nor  do  they  prevent  trainmen  from  taking  pas- 
senger trains  or  freight  trains  loaded  exclusively  with  live 
stock  or  perishable  freight  to  the  nearest  division  point  of 
the  road.  The  enforcement  of  this  law  is  placed  in  the 
hands  of  the  Eailroad  Commissioners.^"^ ^ 

By  an  act  of  1907  the  Railroad  Commissioners  were  re- 
quired to  investigate  accidents  on  railroads.  Other  laws  of 
a  regulatory  character  require  special  appliances  on  switch 
engines,  special  construction  of  caboose  cars,  frosted  glass 
in  locomotive  cabs,  and  the  semi-monthly  payment  of  wages 
to  all  employees. •^^'^  Street  railway  companies  are  required 
to  enclose  the  vestibules  on  cars  so  as  to  protect  the  oper- 
ators. They  are  also  required  to  equip  their  cars  with 
power  brakes  and  devices  for  sanding  the  rails. ^''^ 


LABOR  LEGISLATION  261 

THE  BUREAU  OF  LABOR  STATISTICS 

The  act  creating  the  Iowa  Bureau  of  Labor  Statistics  was 
passed  in  1884.  It  has  been  converted  into  an  effective 
piece  of  administrative  machinery  by  the  extension  of  its 
jurisdiction  beyond  the  mere  compilation  of  statistics.  The 
Bureau  has  been  developed*  in  the  following  manner.  Dur- 
ing the  first  ten  years  of  its  existence  the  personnel  con- 
sisted only  of  the  commissioner,  appointed  by  the  Governor 
with  the  approval  of  the  Executive  Council  for  a  term  of 
two  years.  Clerical  assistance  was  provided  in  1894.  Two 
years  later  the  office  of  deputy  commissioner  was  created. 
In  1904  a  factory  inspector  and  an  office  clerk  were  added 
to  the  force.  One  additional  factory  inspector  was  provided 
for  by  the  Thirty-third  General  Assembly  in  1909.  The 
law  as  rewritten  in  1913  provides  for  three  factory  inspec- 
tors, one  of  whom  must  be  a  woman.^"^^ 

The  support  of  the  Bureau  has  never  been  liberal.  The 
commissioner's  salary  remained  at  $1500  a  year  for  twenty- 
three  years.  At  present  the  commissioner  receives  $1800  a 
year,  the  deputy  $1500  a  year,  and  the  factory  inspectors 
$100  per  m^onth;  while  the  amount  available  for  traveling 
expenses  is  now  $4000  per  year.  The  State  maintains  an 
office  for  the  commissioner  and  furnishes  a  clerk  at  a  salary 
of  $1000  a  year.^^^  The  law  creating  the  Bureau  defined 
the  scope  of  its  work  as  follows  -J^^ 

The  duties  of  said  commissioner  shall  be  to  collect,  assort,  sys- 
tematize and  present  in  biennial  reports  ....  statistical  de- 
tails relating  to  all  departments  of  labor  in  the  state,  especially  in 
its  relations  to  the  commercial,  social,  educational  and  sanitary  con- 
ditions of  the  laboring  classes,  and  to  the  permanent  prosperity  of 
the  mechanical,  manufacturing  and  productive  industries  of  the 
state,  and  shall  as  fully  as  practicable  collect  such  information  and 
reliable  reports  from  each  county  in  the  state  the  amount  and  con- 
dition of  the  mechanical  and  manufacturing  interests,  the  value  and 
location  of  the  varfous  manufacturing  and  coal  productions  of  the 


262  ECONOMIC  LEGISLATION  IN  IOWA 

state,  also  sites  offering  natural  or  acquired  advantages  for  the 
profitable  location  and  operation  of  different  branches  of  industry ; 
he  shall  by  correspondence  with  interested  parties  in  other  parts  of 
the  United  States  impart  to  them  such  information  as  may  tend  to 
induce  the  location  of  mechanical  and  producing  plants  within  the 
state,  together  with  such  other  information  as  shall  tend  to  increase 
the  productions,  and  consequent  employment  of  producers;  and  in 
said  biennial  report  he  shall  give  a  statement  of  the  business  of  the 
bureau  since  the  last  regular  report,  and  shall  compile  and  publish 
therein  such  information  as  may  be  considered  of  value  to  the  indus- 
trial interests  of  the  state,  the  number  of  laborers  and  mechanics 
employed,  the  number  of  apprentices  in  each  trade,  with  the  nativ- 
ity of  such  laborers,  mechanics  and  apprentices'  wages  earned,  the 
savings  from  the  same,  with  age  and  sex  of  laborers  employed,  the 
number  and  character  of  accidents,  the  sanitary  condition  of  insti- 
tutions where  labor  is  employed,  the  restrictions  if  any  which  are 
put  upon  apprentices  when  indentured,  the  proportion  of  married 
laborers  and  mechanics  who  live  in  rented  houses,  with  the  average 
annual  rental  and  the  value  of  property  owned  by  laborers  and  me- 
chanics ;  and  he  shall  include  in  such  report  what  progress  has  been 
made  with  schools  now  in  operation  for  the  instruction  of  students 
in  the  mechanic  arts  and  what  systems  have  been  found  most  prac- 
tical with  details  thereof. 

The  law  required  the  Bureau  to  collect  much  information 
which  can  be  secured  only  from  employers  of  labor,  but 
during  the  first  twelve  years  of  its  existence  the  Bureau 
had  no  authority  to  compel  any  one  to  make  reports.  An 
extensive  amendment  was  passed  in  1896  to  remedy  this  and 
other  defects  of  the  law.  The  amended  law  made  compul- 
sory the  giving  of  required  information  to  the  commission- 
er and  authorized  Mm  to  administer  oaths  and  subpoena 
witnesses.  A  penalty  was  also  prescribed  for  refusal  to 
give  information.^^2 

The  scope  of  the  Bureau's  work  has  been  extended  from 
time  to  time  beyond  the  mere  compilation  of  statistics. 
Since  1902  the  commissioner  has  been  required  to  include  in 


LABOR  LEGISLATION  263 

his  report  'Hhe  means  of  escape  from,  and  the  protection  of 
life  and  health  in  factories,  the  employment  of  children,  the 
number  of  hours  of  labor  exacted  from  them  and  from  wom- 
en. "^^^  Another  act  of  the  same  General  Assembly  charged 
the  commissioner  and  his  assistants  with  the  work  of  fac- 
tory inspection  and  the  enforcement  of  the  factory  law. 
They  were  charged  with  the  enforcement  of  the  fire  escape 
law  in  1904,  with  the  enforcement  of  the  child  labor  law  in 
1906,  and  with  the  supervision  of  private  employment 
agencies  in  1907.^^^ 

In  1913  the  commissioner  was  authorized  to  inspect  any 
place  of  employment  at  his  own  discretion,  without  a  com- 
plaint being  entered  or  a  request  being  made,  and  the  pre- 
scribed forms  upon  which  reports  were  to  be  made  by 
employers  to  the  commissioner  were  abolished.  Another 
provision  of  the  same  act  requires  a  record  to  be  kept  and  a 
report  to  be  made  to  the  commissioner  within  forty-eight 
hours  of  the  occurrence  of  every  accident  causing  death  or 
disability  for  more  than  four  days,  in  industries  other  than 
mines  under  the  supervision  of  the  State  mine  inspector. 
Further  slight  changes  were  made  in  the  duties  of  the  com- 
missioner in  1915  relative  to  the  information  to  be  included 
in  his  reports ;  and  some  alterations  were  made  in  the  def- 
inition of  certain  terms. ^^^ 

Finally,  by  an  act  of  the  Thirty-sixth  General  Assembly 
the  Commissioner  of  the  Bureau  of  Labor  Statistics  was 
required  to  establish  a  department  in  his  office  to  be  called 
the  State  Free  Employment  Bureau.  Provision  was  made 
for  the  necessary  help  and  the  expenses  of  administration. 
The  purpose  of  the  new  department  is  to  bring  the  unem- 
ployed in  touch  with  those  desiring  to  employ  labor.  The 
work  is  to  be  carried  on  by  correspondence  and  no  fees  are 
to  be  charged  for  the  services  of  the  bureau. ■*^*^  It  is  yet  too 
soon  to  determine  the  success  or  failure  of  the  new  depart- 
ment. 


264  ECONOMIC  LEGISLATION  IN  IOWA 

FACTORY  LABOR  LAWS 

Factory  legislation  in  Iowa  is  very  recent,  most  of  the  ex- 
isting laws  having  been  enacted  since  1900.  But  rapid 
progress  has  been  made  during  this  period.  The  Commis- 
sioner of  the  Bureau  of  Labor  Statistics  made,  in  1900,  the 
first  extensive  investigation  of  the  conditions  of  labor  in 
Iowa  factories.  About  three-fourths  of  the  factories  in- 
vestigated fell  below  a  reasonable  standard  of  safety  and 
comfort.  To  remedy  some  of  the  evils  revealed  in  the  com- 
missioner's report  Iowa's  first  factory  law  was  passed  in 
1902.48-^ 

This  law,  which  was  entitled  "An  Act  to  provide  for  the 
safety  and  comfort  of  laborers  and  other  persons  assem- 
bled in  factories  and  buildings  ",'*^^  required  every  estab- 
lishment in  which  five  or  more  persons  were  employed  to 
provide  adequate  water-closet  facilities,  safeguards  for  ma- 
chinery, and  appliances  to  carry  away  dust.  The  enforce- 
ment of  the  law  was  placed  in  charge  of  the  Commissioner 
of  Labor.  More  comprehensive  laws  relating  to  water- 
closets,  washing  facilities,  and  safeguards  for  machinery 
were  passed  in  1911.^^^  Two  laws  have  been  placed  on  the 
statute  books  which  relate  to  keeping  steam  boilers  in  good 
condition,  but  it  appears  that  neither  of  the  acts  has  ever 
been  enforced.  Some  system  of  inspection  should  be  re- 
quired for  such  machinery.'*^^ 

There  were  no  legal  requirements  relating  to  fire  escapes 
on  buildings  in  this  State  until  1882,  when  incorporated 
cities  and  towns  were  given  power  to  require  and  regulate 
the  construction  of  fire  escapes  on  buildings.  In  1888  the 
board  of  public  works  in  any  city  of  thirty  thousand  was 
given  the  same  authority,  but  it  seems  that  these  powers 
were  not  exercised.'*'^ ^  An  attempt  was  made  in  1902  to 
require  fire  escapes  on  buildings  of  three  or  more  stories  in 
height  in  which  more  than  twenty  persons  were  employed. 
The  enforcement  of  this  act  was  left  in  the  hands  of  local 
authorities  and  little  was  accomplished.^^^ 


LABOR  LEGISLATION  265 

The  law  was  made  more  comprehensive  in  1904  and  the 
Commissioner  of  Labor  was  charged  with  its  enforcement 
and  general  compliance  with  the  provisions  of  the  law  was 
secured.^^^ 

The  law  was  rewritten  and  made  much  more  complete  in 
1915.  It  now  prescribes  in  detail  the  number  of  fire  escapes 
required  on  buildings  of  various  capacities;  it  requires 
that  they  be  located  in  certain  positions  and  constructed  of 
certain  prescribed  materials.  Buildings  are  classified  and 
provisions  are  defined  for  each  class.  Doors  must  open 
outward  and  be  unfastened;  and  elaborate  provisions  are 
made  for  the  enforcement  of  the  law.^^^ 

CHILD  LABOR  LEGISLATION 

Iowa  has  been  slow  to  act  in  the  matter  of  child  labor 
legislation.  The  State  is  predominantly  agricultural;  the 
cities  are  comparatively  small ;  and  the  need  for  such  legis- 
lation has  not  been  keenly  felt.  It  is  not  surprising,  there- 
fore, that  child  labor  and  school  attendance  laws  were  not 
developed  before  the  beginning  of  the  twentieth  century. 

The  only  child  labor  legislation  enacted  before  1900  had 
reference  to  the  employment  of  children  in  mines.  An  act 
passed  in  1874  provided  that  ''no  young  person  under  ten 
years  of  age,  or  female  of  any  age,  shall  be  permitted  to 
enter  any  mine  to  work  therein".  In  1880  the  age  limit  was 
raised  to  twelve  and  in  1906  to  fourteen  years.*®^  At  pres- 
ent, due  to  the  efforts  of  the  United  Mine  Workers,  few 
boys  under  sixteen  are  employed  in  the  mines. 

Earnest  efforts  were  made  to  secure  child  labor  legisla- 
tion as  early  as  1886,  but  no  law  was  placed  upon  the  statute 
books  until  1902.  During  this  time  important  industrial  and 
social  changes  were  taking  place  and  child  labor  was  rapidly 
increasing.^'^^  One  section  of  the  factory  act  of  1902  at- 
tempted to  protect  the  lives  and  limbs  of  child  workers.  It 
provided  that  "no  person  under  sixteen  years  of  age,  and 


266  ECONOMIC  LEGISLATION  IN  IOWA 

no  female  under  eighteen  years  of  age  shall  be  permitted  or 
directed  to  clean  machinery  while  in  motion.  Children 
under  sixteen  years  of  age  shall  not  be  permitted  to  operate 
or  assist  in  operating  dangerous  machinery,  of  any  kind." 
The  first  compulsory  school  attendance  law  of  the  State  was 
enacted  by  the  same  General  Assembly.^^*^ 

A  vigorous  campaign  was  carried  on  for  the  purpose  of 
obtaining  an  effective  child  labor  law  during  the  sessions  of 
both  the  Twenty-ninth  and  Thirtieth  General  Assemblies, 
but  no  legislation  was  enacted.  Finally,  in  1906,  a  moder- 
ately good  measure  was  passed.^^^  The  law  provided  that 
'*no  person  under  fourteen  years  of  age  shall  be  employed 
with  or  without  wages  or  compensation  in  any  mine,  manu- 
facturing establishment,  factory,  mill,  shop,  laundry, 
slaughter  house  or  packing  house,  or  in  any  store  or  mer- 
cantile establishment  where  more  than  eight  persons  are 
employed,  or  in  the  operation  of  any  freight  or  passenger 
elevator."  In  certain  classes  of  work  the  age  limit  was 
sixteen.  A  maximum  work-day  of  ten  hours  was  prescribed, 
and  work  between  nine  o'clock  at  night  and  six  o'clock  in 
the  morning  was  prohibited.  The  law  did  not  apply  to  the 
canning  industry  when  no  machinery  was  operated.  The 
enforcement  of  the  statute  devolved  upon  the  State  Bureau 
of  Labor.  Although  this  law  was  incomplete  it  was,  never- 
theless, a  movement  in  the  right  direction.'*^^ 

An  amendment  of  1909  required  employers  to  furnish 
proof  of  the  age  of  any  child  employed  by  them  and  pre- 
scribed the  kind  of  proof  that  must  be  furnished.^"^  No 
other  changes  were  made  in  the  law  until  1915  —  the  at- 
tempt to  secure  a  revision  of  the  law  having  failed  in  1913 
—  but  the  compulsory  school  attendance  laws  were  greatly 
improved.'^^^ 

A  really  comprehensive  child  labor  law  was  secured  in 
1915.^^^  By  the  provisions  of  this  act  children  under  four- 
teen years  of  age  may  not  be  employed  in  factories  and 


LABOR  LEGISLATION  267 

mills.  Boys  under  eleven  and  girls  under  eighteen  years  of 
age  may  not  be  employed  in  any  street  trade  in  cities  of  ten 
thousand  or  more  inhabitants,  and  boys  of  from  eleven  to 
sixteen  years  of  age  must  have  work  permits  to  enable  them 
to  work  in  the  street  trades.  Stringent  regulations  are  pre- 
scribed for  child  employment  in  dangerous  trades.  An 
eight  hour  day  is  the  maximum  for  children  below  sixteen 
years  and  such  children  may  work  only  between  seven 
o'clock  in  the  morning  and  six  o'clock  at  night.  Detailed 
regulations  are  prescribed  in  the  matter  of  securing  permits 
and  the  enforcement  of  the  spirit  of  the  law.  This  legisla- 
tion, while  it  is  lacking  in  many  good  features,  places  Iowa 
among  the  most  progressive  States  in  the  matter  of  the 
regulation  of  child  labor. 

MISCELLANEOUS  LABOR  LEGISLATION 

The  general  conspiracy  law  in  the  Code  of  1851  makes  it  a 
penitentiary  offense  to  conspire  ' '  to  injure  the  person,  char- 
acter, business,  or  property  of  another ;  or  to  do  any  illegal 
act  injurious  to  the  public  trade ' '.  This  provision  probably 
includes  boycotting  within  its  terms. 

Ever  since  1866  there  has  been  a  provision  in  the  Iowa 
statutes  which  requires  the  proper  enclosing  of  tumbling 
rods  upon  horse-power  threshing  machines.^*^^ 

In  1886  the  statute  governing  the  incorporation  of  asso- 
ciations not  for  pecuniary  profit  was  extended  to  ''trades 
union  and  other  organizations  of  labor,  for  the  regulation, 
by  lawful  means  of  prices  of  labor,  of  hours  of  work,  and 
other  matters  pertaining  to  industrial  pursuits.  "^*^^  A 
blacklisting  law  which  aims  to  prevent  the  blacklisting  of 
laborers  by  employers  was  enacted  in  1888.  Union  labels 
were  given  legal  protection  in  1892 ;  and  a  law  of  this  same 
year  aims  to  insure  to  employees  the  right  to  absent  them- 
selves from  work  long  enough  to  vote  on  election  days.  In 
1884  nine  hours  were  declared  to  constitute  a  day's  work  on 


268  ECONOMIC  LEGISLATION  IN  IOWA 

the  public  roads,  and  in  1897  this  was  reduced  to  eight 
hours.°*^^ 

Laws  were  passed  in  1907  for  the  regulation  of  employ- 
ment bureaus  and  offices;  and  the  Commissioner  of  Labor 
was  required  by  law  to  establish  a  Free  State  Employment 
Bureau  in  1915.^06 

The  Commissioner  of  the  Iowa  Bureau  of  Labor  Statis- 
tics recommended  the  establishment  of  a  State  Board  of 
Arbitration  to  aid  in  the  settlement  of  industrial  disputes  in 
1885.  There  was  some  effort  to  follow  out  his  recommenda- 
tion, but  the  final  result  was  a  provision  for  tribunals  of 
voluntary  arbitration  in  each  county.^^"^  It  appears  that 
this  law  was  never  of  any  practical  utility,  and  so  it  was  not 
incorporated  in  the  Code  of  1897. 

No  further  legislative  provision  was  made  for  settling 
labor  disputes  by  arbitration  until  1913,  when  the  Thirty- 
fifth  General  Assembly  authorized  the  appointment  of 
boards  of  arbitration  and  defined  their  powers  and  duties.^*^^ 
Whenever  a  dispute  arises  between  employer  and  employees 
involving  ten  or  more  wage-earners  which  threatens  to 
cause  a  strike  or  lockout,  and  the  industry  is  not  under  any 
other  board  of  conciliation,  either  one  or  both  parties  to  the 
dispute,  the  Commissioner  of  Labor,  or  any  one  of  several 
groups  enumerated  in  the  law  may  apply  in  writing  to  the 
Governor  for  the  appointment  of  a  board  of  arbitration. 

Upon  receipt  of  the  application  the  Governor  requests 
each  party  in  dispute  to  submit  the  names  of  five  arbitra- 
tors within  three  days.  From  these  nominations  the  Gov- 
ernor chooses  one  from  each  group,  or  in  case  either  party 
fails  to  make  nominations  the  Governor  appoints  a  fit  per- 
son. These  members  then  recommend  a  third  person; 
whereupon  the  board  organizes.  In  case  the  application  is 
made  by  both  parties  it  must  state  whether  or  not  they  are 
agreed  to  be  bound  by  the  board's  decision.  If  they  are  so 
agreed  the  decision  is  binding  for  one  year. 


LABOR  LEGISLATION  269 

The  board  is  vested  with  the  same  power  as  the  district 
court  in  the  matter  of  calling  witnesses,  administering 
oaths,  and  enforcing  order.  The  expenses  are  paid  by  the 
State.  The  board  is  given  ten  days  in  which  to  visit  the 
place  of  dispute  and  investigate  conditions.  During  this 
period  neither  party  may  go  on  a  strike  or  enforce  a  lock- 
out. A  written  decision  of  the  case  is  made  as  soon  as  pos- 
sible. This  decision  is  at  once  made  public,  and  filed  in  the 
office  of  the  city  clerk.  Moreover,  a  written  decision  and  a 
report  of  the  findings  must  be  made  to  the  Governor;  and 
each  party  to  the  dispute  receives  a  copy,  one  copy  is  pub- 
lished in  the  report  of  the  Commissioner  of  Labor,  and  the 
report  is  printed  in  two  newspapers  in  the  county.  The 
compensation  of  the  members  of  the  board  is  five  dollars 
per  day.  The  law  represents  an  attempt  to  prevent  labor 
disputes  from  reaching  the  actual  strike  or  lockout  stage 
and  to  bring  about  fair  dealings  through  publicity  of  con- 
ditions. 

INDEMNITY  FOR  WORK  ACCIDENTS 

Until  the  adoption  of  the  Workman's  Compensation  Act 
in  1913  the  only  attempt  made  by  the  Iowa  legislators  to 
protect  workmen  was  by  a  modification  of  the  following 
common  law  principles : 

Duties  of  Employers. —  It  is  the  duty  of  the  employer  to  use  ordi- 
nary care  for  the  safety  of  his  employees  and  an  injury  resulting 
from  breach  of  this  duty  constitutes  negligence,  for  which  he  may 
be  held  liable. 

Occupational  Risks. —  There  are  certain  inherent  hazards  in  every 
industry  which  no  amount  of  care  is  able  to  overcome.  For  these 
the  law  of  employers'  liability  affords  no  remedy. 

The  Fellow  Servant  Rule. —  Neither  can  a  master  be  made  ac- 
countable to  one  workman  for  the  negligent  acts  or  omissions  of 
another  who  is  engaged  in  the  same  employment.  With  the  grow- 
ing complexity  of  modern  industry,  co-employment  has  ironically 


270  ECONOMIC  LEGISLATION  IN  IOWA 

kept  pace.  Track  inspectors  and  locomotive  engineers  have  been 
classed  as  feUow  servants. 

Contributory  Negligence. —  Another  way  in  which  the  law  baffles 
an  injured  workman  in  his  endeavor  to  get  indemnity  for  personal 
injury  is  through  the  doctrine  of  contributory  negligence.  No  mat- 
ter how  delinquent  an  employer  may  have  been,  if  the  injury  has 
resulted  from  the  failure  of  the  workman  to  exercise  due  care  or  on 
account  of  the  slightest  negligence  on  his  part  there  is  no  compensa- 
tion forthcoming. 

Assumption  of  Risk. —  Finally,  if  an  employer  is  so  notoriously 
negligent  that  the  workman  must  have  been  aware  of  the  danger,  he 
is  assumed  to  have  tacitly  accepted  the  negligence  as  a  condition  of 
his  employment,  assumed  the  risk,  and  waived  his  right  to  re- 
■cover.^^^ 

Before  the  adoption  of  the  accident  indemnity  law  in  1913 
the  only  method  by  which  an  injured  workman  could  pro- 
ceed to  claim  indemnity  was  through  an  appeal  to  the  courts 
under  the  Common  Law  of  employers'  liability.  It  is  true 
that  the  Common  Law  of  employers '  liability  had  been  ma- 
terially modified  in  the  direction  of  justice  and  humanity  by 
the  Iowa  statutes  of  railway  liability  and  assumption  of 
risk.  But  that  law,  even  as  thus  modified,  was  still  very 
far  from  according  adequate  protection  to  employees  in  any 
hazardous  calling.^  ^*^ 

Statutory  modifications  of  the  Common  Law  previous  to 
1913  may  be  briefly  summarized.  First,  the  Iowa  railway 
liability  law  was  enacted  in  1862,  and  it  provided  that 
''every  railroad  company  shall  be  liable  for  all  damages 
sustained  by  any  person,  including  employees  of  the  com- 
pany, in  consequence  of  any  neglect  of  the  agents  or  by  any 
mismanagement  of  the  engineers  or  other  employees  of  the 
-corporation  to  any  person  sustaining  such  damage. "^^^  In 
1870  there  was  added  the  clause:  ''all  contracts  to  the  con- 
trary notwithstanding";'''^-  and  two  years  later  railroad 
■companies  were  made  liable  for  the  wilful  wrongs  of  their 


LABOR  LEGISLATION  271 

agents  and  employees  when  such  wrongs  were  connected  in 
any  way  with  the  operation  of  the  railroad.^ ^^  These  acts 
were  combined  in  one  section  in  the  Code  of  1873.^^'^  This 
liability  applies  to  lessees  and  operators,  but  not  to  street 
railway  companies.  Interurban  railroads  were  included 
within  its  provisions  in  1902.^^^  The  defense  of  assumption 
of  risk  was  abolished  for  violators  of  the  automatic  coupler 
and  brake  law  in  1890.^^^  An  assumption  of  risk  act  was 
enacted  in  1907  which  completely  superseded  the  Common 
Law  doctrines  as  to  the  effect  of  protest  and  promise  to  re- 
pair.^ ^"^  A  more  comprehensive  law,  which  was  more  favor- 
able to  employees,  superseded  the  act  of  1907.  The  same 
General  Assembly  in  1909  enacted  an  important  amendment 
to  the  railway  liability  law.^^^  This  amendment  established 
the  rule  of  comparative  negligence  as  to  cases  coming  with- 
in the  statute :  it  abolished  contributory  negligence  as  a  de- 
fense to  suits  based  on  violations  of  the  safety  laws  by  rail- 
road companies,  and  abrogated  the  Common  Law  doctrine 
of  assumption  of  risk  to  the  same  extent  that  the  earlier 
statute  abrogated  the  fellow-servant  doctrine.^  ^^ 

Thus  by  the  year  1912  the  fellow-servant  rule  and  the 
doctrine  of  assumption  of  risk  were  not  applicable  in  the 
case  of  railroads ;  nor  was  contributory  negligence  an  abso- 
lute bar  to  recovery.  But  the  fellow-servant  rule  and  the 
contributory  negligence  doctrine  remained  in  force  in  other 
industries ;  and  the  assumption  of  risk  doctrine  was  appli- 
cable only  to  employees  whose  duty  it  was  to  repair  defects 
and  to  those  who  remained  at  work  when  the  danger  was  so 
imminent  that  a  reasonably  prudent  person  would  not  do 

SO.^20 

The  net  result  of  all  this  legislation,  Mr.  Downey  says, 
was  satisfactory  to  neither  employers  nor  employees.  The 
indemnity  of  work  accidents  still  depended  upon  the  appli- 
cation of  the  law  of  negligence,  and  that  law,  in  Iowa  as 
everywhere  else,  is  inadequate,  slow,  haphazard,  and  ex- 
tremely wasteful  in  operation."^^ 


272  ECONOMIC  LEGISLATION  IN  IOWA 

The  condition  resulted  in  a  demand  for  a  rational  indem- 
nity system  and  the  Thirty-fourth  General  Assembly  cre- 
ated an  Employers'  Liability  and  Workmen ^s  Compensa- 
tion Commission,  the  duty  of  which  was  to  investigate  the 
problem  of  industrial  accidents  and  the  condition  of  the  law 
of  liability  for  injuries  or  death  suffered  in  the  course  of 
industrial  employment,  and  to  enquire  into  the  most  equi- 
table and  effectual  method  of  providing  compensation  for 
losses  suffered.  The  commission  was  directed  to  report  to 
the  Governor  and  General  Assembly  and  submit  a  draft  of 
a  bill  or  bills  for  appropriate  legislation."-- 

The  bill  endorsed  by  a  majority  of  the  commission  pro- 
vided a  quasi-elective,  mutual  insurance  system.^^^  Al- 
though this  measure  was  greatly  changed  before  its  final 
passage  by  the  Thirty-fifth  General  Assembly  in  1913  the 
law  as  enacted  represents  the  principles  for  which  the  orig- 
inal bill  stood.^-* 

The  scope  of  the  measure  as  written  into  statute  law  is 
broad.  It  applies  to  all  employers  and  employees  except 
household  servants,  farm  hands,  and  casual  laborers.  In 
case  the  State  or  any  of  its  political  subdivisions  is  the  em- 
ployer it  is  compulsory  upon  both  employer  and  employee. 
In  all  other  cases  the  acceptance  of  the  terms  of  the  act  is 
optional  with  both  employer  and  employee.  But  unless  the 
law  is  affirmatively  rejected  it  becomes  automatically  com- 
pulsory upon  both  employer  and  employee.  And  in  case  an 
employer  rejects  the  terms  of  the  act  he  cannot  escape  lia- 
bility for  personal  injuries  sustained  by  his  employees  be- 
cause of  the  assumption  of  risk,  the  fellow-servant  rule,  or 
on  the  ground  of  contributory  negligence,  except  in  case  of 
wilful  negligence  or  intoxication.  The  law,  moreover,  pro- 
hibits contracts  between  employers  and  employees  which 
relieve  the  employer  from  liabilities  for  injuries  caused  by 
his  own  negligence. 

If  the  employee  rejects  the  terms  of  the  act  the  employer 


LABOR  LEGISLATION  273 

shall  then  ''have  the  right  to  plead  and  rely  upon  any  and 
all  defenses  including  those  at  common  law,  and  the  rules 
and  defenses  of  contributory  negligence,  assumption  of 
risk  and  fellow-servant  shall  apply  and  be  available  to  the 
employer  as  by  statute  authorized  unless  otherwise  pro- 
vided in  this  act. ' ' 

The  law  defines  many  terms  and  includes  a  long  compen- 
sation schedule.  The  amount  of  compensation  is  governed 
by  the  seriousness  of  the  injury,  and  is  determined  by  the 
average  wages  of  the  employee  based  upon  his  annual  earn- 
ings for  the  year  next  preceding  his  injury.  Employers 
may  also  be  required  to  furnish  surgical,  medical,  and  hos- 
pital services  to  the  amount  of  one  hundred  dollars.  If 
death  results  from  an  injury  and  the  employee  has  no  one 
dependent  upon  him,  the  expenses  of  sickness  and  burial 
only,  not  to  exceed  one  hundred  dollars,  are  required  from 
the  employer.  In  case  there  are  persons  wholly  dependent 
upon  the  employee  they  are  entitled  to  receive  one-half  of 
the  workman's  average  weekly  wage  —  but  not  less  than 
five  nor  more  than  ten  dollars  a  week  for  a  period  of  three 
hundred  weeks.  Provision  is  also  made  which  entitles  par- 
tial dependents  to  receive  a  proportional  amount  of  the 
workman's  annual  wages  formerly  contributed  to  their 
support. 

No  compensation  is  allowed  to  a  workman  for  injury  re- 
sulting in  incapacity  of  less  than  two  weeks  duration.  For 
injury  producing  temporary  disability  the  workman  is  en- 
titled to  fifty  per  cent  of  the  weekly  wage  at  the  time  of  the 
injury,  unless  that  wage  be  less  than  five  dollars  a  week,  in 
which  case  he  is  entitled  to  all  of  it.  Payments  are  con- 
tinued through  three  hundred  weeks  of  such  disability.  For 
total  permanent  disability  the  injured  workman  receives 
the  same  compensation  for  a  period  of  four  hundred  weeks. 
A  complex  schedule  of  compensation  for  various  dismem- 
berments is  also  included  in  the  law.  Payments  may  be 
made  weekly  or  in  a  lump  sum  if  desired. 

18 


274  ECONOMIC  LEGISLATION  IN  IOWA 

The  whole  burden  of  indemnity  payments  is  placed  upon 
the  employer,  and  any  benefit  or  insurance  arrangement 
whereby  the  employee  contributes  a  part  of  his  wages  to  a 
relief  fund  are  held  to  be  void. 

The  law  created  the  office  of  Iowa  Industrial  Commis- 
sioner; and  the  administration  of  the  law  is  placed  in  the 
hands  of  this  commissioner,  who  is  appointed  by  the  Gov- 
ernor for  a  term  of  six  years  at  a  salary  of  three  thousand 
dollars  a  year.  The  commissioner  has  large  powers  in  set- 
tling disputes,  securing  testimony,  and  approving  safety 
appliances. 

Part  III  of  the  act  outlines  a  scheme  of  industrial  insur- 
ance and  every  employer  under  the  act  is  required  to  secure 
his  liability  within  thirty  days  with  some  corporation,  asso- 
ciation, or  organization  approved  by  the  State  Insurance 
Department.  Such  insurance  may  be  either  mutual  or 
benefit. 

The  Thirty-seventh  General  Assembly  enacted  six  sep- 
arate amendments  to  the  workmen's  compensation  act  none 
of  which  changed  the  fundamental  features  of  the  law. 
Many  changes  were  made  in  the  compensation  schedule, 
however,  and  the  manner  of  arbitration  was  prescribed. 
Some  penalties  were  changed  and  some  new  terms  were 
defined.^2^ 

An  attack  was  made  upon  the  constitutionality  of  the 
Iowa  Workmen's  Compensation  Law  in  the  Federal  Court 
for  the  Southern  District  of  Iowa  §oon  after  its  enactment, 
and  in  a  decision  rendered  by  Judge  Smith  McPherson  on 
June  22,  1914,  the  act  was  declared  to  be  constitutional  in 
all  its  parts.  The  matter  has  since  been  appealed  to  the 
Supreme  Court  of  the  United  States.^^® 

RECAPITULATION 

The  need  for  labor  legislation  is  recognized  wherever  the 
capitalistic  system  of  production  is  in  vogue.    In  Iowa  the 


LABOR  LEGISLATION  275 

capitalistic  system  developed  slowly,  due  to  the  fact  that 
the  State  was  predominantly  agricultural.  As  a  result  the 
labor  legislation  of  this  State  is  smaller  in  amount  and  of  a 
less  advanced  character  than  that  of  many  of  the  States  of 
the  Union. 

The  wage  laws  are  scattered  and  few,  but  they  are  en- 
forceable. Iowa  has  tried  both  the  contract  system  and  the 
State  account  system  for  the  labor  of  convicts.  The  con- 
tract system  has  finally  been  abolished  in  favor  of  the  public 
account  system,  but  the  problem  of  the  proper  disposal  of 
convict  labor  remains  unsolved. 

The  legislation  affecting  mine  laborers  in  this  State  is 
more  voluminous  than  that  for  any  other  one  class  of  work- 
ingmen.  The  purpose  of  this  legislation  is  two-fold:  it 
seeks  to  protect  the  lives  and  limbs  of  miners,  and  to  secure 
to  them  the  full  control  of  their  wages.  Eailway  labor  leg- 
islation seeks  the  same  benefits  for  railway  laborers  as  the 
mine  laws  seek  for  the  miners.  In  this  State  the  emphasis 
in  railway  labor  laws  has  been  placed  on  the  protective 
features. 

The  Iowa  Bureau  of  Labor  Statistics  has  developed  into  a 
Bureau  of  Labor  in  the  scope  of  its  activities.  It  has  easily 
justified  its  existence.  It  has  gained  the  confidence  and 
support  of  organized  labor  and  cooperates  with  employers 
in  a  large  measure. 

Progress  in  factory  legislation  has  been  rapid.  Provi- 
sion is  now  made  for  fire  escapes,  for  the  safeguarding  of 
dangerous  machinery,  for  the  equipment  of  grinding  and 
polishing  machines  with  dust  collectors,  for  suitable  water- 
closets,  and  for  inspection  by  an  official  with  ample  power 
to  enforce  the  laws. 

Child  labor  laws  came  slowly  in  Iowa  because  their  need 
was  not  keenly  felt.  But  progress  has  been  made  until  the 
child  labor  laws  of  this  State  now  compare  favorably  with 
those  of  other  Commonwealths. 


276  ECONOMIC  LEGISLATION  IN  IOWA 

The  Iowa  Workmen's  Compensation  Act  of  1913  is  a 
movement  in  the  right  direction.  It  recognizes  that  the 
financial  burdens  of  industrial  accidents  should  be  borne  by 
the  industry  and  not  by  the  individual  workingman  and  his 
family. 


XII 

THE  POWER  OF  MUNICIPAL  CORPORATIONS  IN 
ENACTING  ECONOMIC  LEGISLATION 

The  power  to  enact  economic  legislation  has  to  some  ex- 
tent been  delegated  to  municipal  corporations  by  the  Gen- 
eral Assembly.  For  example,  such  corporations  have  been 
given  power  to  make  ordinances  for  the  regulation  of  cer- 
tain businesses,  enterprises,  and  industries  within  their 
limits;  but  they  enjoy  only  those  powers  which  have  been 
expressly  conferred  upon  them  by  the  legislature.^^"^ 

In  treating  of  the  powers  which  have  been  delegated  to 
municipalities  to  enact  economic  legislation  the  purpose  will 
be  to  deal  only  with  those  laws  which  enumerate  and  dele- 
gate such  power :  only  those  grants  of  power  will  be  consid- 
ered which  authorize  municipalities  to  legislate  upon  the 
subjects  which  are  clearly  within  the  scope  of  the  general 
plan  of  this  work.  Neither  will  the  present  treatment  at- 
tempt to  discuss  the  actual  administration  of  the  law  or  to 
point  out  what  municipal  corporations  have  done  in  enact- 
ing economic  legislation :  here  it  is  intended  merely  to  indi- 
cate what  powers  have  been  granted  to  the  cities  and  towns 
of  the  State. 

SPECIAL  OHARTEE  CITIES 

The  Territory  of  Iowa  was  established  in  1838,  but  the 
general  law  of  the  Territory  of  Wisconsin  under  which 
cities  and  towns  could  incorporate  remained  in  force  until 
1840.^2^  Indeed,  there  was  no  other  general  law  for  the  in- 
corporation of  cities  and  towns  enacted  during  the  Terri- 
torial period,  and  the  common  practice  of  the  time  was  to 

277 


278  ECONOMIC  LEGISLATION  IN  IOWA 

incorporate  cities  and  towns  by  special  acts  of  the  legisla- 
ture. A  general  law  providing  for  the  incorporation  of 
towns  was  passed  in  1847,  but  the  practice  of  granting  spe- 
cial charters  to  municipal  corporations  was  continued  until 
prohibited  by  the  Constitution  of  1857. 

During  the  period  in  which  it  was  the  policy  to  incor- 
porate cities  and  towns  by  special  acts  of  the  legislature 
about  forty  cities  and  towns  were  chartered.^^^  An  exam- 
ination of  these  special  charters  shows  that  the  delegation 
of  power  varied  considerably.  Although  the  first  towns  to 
be  incorporated  under  special  charters  received  relatively 
little  power,  the  charters  voted  at  a  later  date,  especially 
those  granted  in  1856  and  1857,  conferred  rather  broad 
powers  of  local  legislation.  To  indicate  the  scope  of  such 
grants  of  authority  it  will  only  be  necessary  to  review  the 
provisions  of  two  or  three  typical  charters. 

The  first  special  charter  granted  by  the  Legislative  As- 
sembly of  the  Territory  of  Iowa  was  granted  to  Blooming- 
ton  (now  Muscatine)  in  January,  1839.^^^  By  its  provi- 
sions the  only  power  delegated  to  the  corporation  in 
enacting  economic  legislation  was  the  authority  to  regulate 
and  improve  lanes  and  alleys  and  to  determine  the  width  of 
sidewalks.  The  streets,  lanes,  and  alleys  of  the  town,  in- 
cluding the  several  roads  leading  from  the  town  for  the 
distance  of  one  mile,  were  declared  to  constitute  one  road 
district,  and  the  electors  of  the  town  were  to  elect  an  over- 
seer for  such  district. 

The  town  of  Davenport  was  granted  a  special  charter 
only  a  few  days  later.  In  this  case  the  officials  were  author- 
ized *'to  make,  ordain,  and  publish  all  by-laws  and  ordi- 
nances, not  inconsistent  with  the  constitution  and  laws  of 
the  United  States,  or  of  this  Territory,  as  they  shall  deem 
necessary  and  proper  for  the  promotion  of  morality,  as  well 
as  for  the  good  regulation,  interest,  safety,  health,  cleanli- 
ness, and  conveniences  of  said  town  and  the  citizens  there- 


POWER  OF  MUNICIPAL  CORPORATIONS  279 

of".  The  corporation  was  also  authorized  to  improve  all 
streets,  alleys,  sidewalks,  and  drains  or  sewers ;  to  regulate 
markets,  and  to  establish  a  fire  department.  The  same  pro- 
vision was  made  in  regard  to  a  road  district  as  had  been 
included  in  the  Bloomington  charter.^^^ 

Davenport  was  re-incorporated  by  an  act  approved  on 
February  11,  1842,  This  act  authorized  the  corporation  to 
regulate  vessels  and  water-crafts  within  the  limits  of  the 
town;  to  erect  lamps;  to  license  and  regulate  drays  and 
other  vehicles  kept  for  hire;  to  regulate  markets  and  the 
sale  of  produce;  to  regulate  and  improve  the  streets, 
wharves,  public  grounds  and  sewers ;  to  organize  and  estab- 
lish fire  companies ;  and  to  license  bakers  and  regulate  the 
price  and  weight  of  bread.  The  provision  relating  to  the 
town  road  district  remained  unchanged."^^ 

Although  the  powers  delegated  to  municipal  corporations 
by  the  special  charters  varied  greatly  they  usually  included 
authority  to  construct  and  maintain  a  system  of  water  sup- 
ply and  a  lighting  system.  The  specially  chartered  munic- 
ipal corporations  were  given  broad  powers  over  streets  and 
bridges.  They  could  erect  and  maintain  markets ;  improve 
and  regulate  wharves,  docks,  and  the  navigation  of  streams 
within  their  limits;  license  and  regulate  transient  mer- 
chants ;  regulate  local  transportation  systems,  such  as  carts, 
carriage,  dray,  and  express  lines ;  protect  the  city  from  fire ; 
and  inspect  and  regulate  weights  and  measures.  They 
could  levy  and  collect  taxes  on  the  taxable  property  within 
the  corporation  for  the  purpose  of  carrying  out  the  author- 
ity given  them;  but  the  amount  of  the  tax  which  could  be 
levied  was  usually  limited  by  the  charter. 

During  the  period  when  special  charters  were  granted  to 
municipalities  the  cities  and  towns  were  small,  and  so  the 
regulation  of  the  public  service  industries  was  a  compara- 
tively simple  matter.  Indeed,  the  public  utilities  problem, 
as  we  now  think  of  it,  did  not  exist.    More  attention  was 


'280  ECONOMIC  LEGISLATION  IN  IOWA 

given  at  that  time  to  the  regulation  and  license  of  the  dif- 
ferent lines  of  private  business  which  were  being  conducted 
within  the  corporation.  The  powers  relative  to  such  regu- 
lation w^ere  enumerated  in  detail  in  the  several  charters. 
Some  went  so  far  as  to  allow  the  city  to  regulate  the  weight, 
quality,  and  price  of  bread  to  be  sold  and  used  in  the  city.^^^ 

POWERS  GRANTED  BY  GENERAL  INCORPORATION  LAWS 

In  addition  to  the  special  charters  the  First  General  As- 
sembly of  the  State  passed  a  general  law  for  the  incorpora- 
tion of  towns  in  1847.^^^  Towns  incorporated  agreeably  to 
this  act  were  empowered  to  make  such  ordinances,  not  in- 
consistent wdth  the  laws  and  Constitution  of  the  State,  as 
they  might  deem  necessary  for  the  good  government  of  the 
corporation.  They  could  establish  and  regulate  markets; 
provide  a  suitable  water  supply;  and  open,  improve,  and 
regulate  streets  and  alleys.  They  had  jurisdiction  over 
public  grounds  and  wharves  and  the  authority  to  establish 
and  maintain  suitable  fire  departments. 

The  Code  of  1851  provided  for  the  incorporation  of  towns 
and  cities  in  much  the  same  manner  as  did  the  act  of  1847 ; 
and  the  power  to  enact  economic  legislation  which  was  dele- 
gated to  them  was  also  much  the  same.  They  were  author- 
ized to  establish,  regulate,  and  improve  streets ;  to  provide  a 
sewer  system;  to  provide  a  water  supply;  to  regulate  and 
repair  wharves  and  landing  places ;  to  regulate  markets ;  to 
license  and  regulate  local  transportation  systems;  and  to 
provide  protection  against  fire.^^^ 

The  Constitution  of  1857  provided  that  the  General  As- 
sembly should  not  pass  local  or  special  laws  for  the  incor- 
poration of  cities  and  towns,^^*'  and  in  the  following  year  the 
General  Assembly  passed  a  general  law  entitled  "An  Act 
for  the  Incorporation  of  Cities  and  Towns.  "^^"^    All  towns 


POWER  OF  MUNICIPAL  CORPORATIONS  281 

and  cities  were  thereafter  to  be  incorporated  in  the  manner 
prescribed  by  this  act,  but  the  new  law  was  not  to  apply  to 
those  cities  and  towns  which  had  already  been  incorporated, 
unless  they  wished  to  come  under  its  provisions. 

Towns  and  cities  incorporated  under  the  act  of  1858  were 
empowered  to  legislate  as  follows :  to  establish  and  regulate 
markets  and  to  provide  for  the  measuring  or  weighing  of 
hay,  coal,  or  other  articles  offered  for  sale ;  to  provide  fire 
protection  and  to  establish  fire  zones  and  regulate  building 
materials;  to  provide  and  regulate  a  water  supply;  to  in- 
stall, regulate,  and  improve  a  drainage  system;  to  provide 
and  regulate  a  proper  lighting  system ;  to  lay  out,  regulate, 
and  improve  streets  and  wharves;  to  regulate  transient 
merchants  and  auctions;  and  to  regulate  local  transporta- 
tion companies.  In  addition  to  the  specific  powers  enumer- 
ated a  general  welfare  clause  provides  that  cities  and  towns 
may  make  ''such  by-laws  and  ordinances  as  to  them  shall 
seem  necessary  and  proper  to  provide  for  the  safety,  pre- 
serve the  health,  promote  the  prosperity,  and  improve  the 
morals,  order,  comfort  and  convenience  of  such  corporation 
and  the  inhabitants  thereof.  "®^^ 

During  the  period  from  1858  to  1873  there  was  little 
change  made  in  the  powers  which  had  been  delegated  to 
cities  and  towns  by  the  act  of  1858.  The  Fourteenth  Gen- 
eral Assembly  in  1872  authorized  municipal  corporations  to 
construct,  or  cause  to  be  constructed,  water-works  —  pro- 
vided that  when  the  right  to  construct  such  work  was 
granted  to  private  individuals  or  corporations  the  grant 
should  not  be  for  a  period  of  more  than  twenty-five  years.^^® 
Several  additional  amendments  of  minor  importance  were 
made  during  this  same  period.^ '**^ 

From  1873  until  the  adoption  of  the  Code  of  1897  many 
acts  affecting  the  powers  of  cities  were  placed  upon  the 
statute  books.    The  Code  of  1897  collects  these  laws  and  re- 


282  ECONOMIC  LEGISLATION  IN  IOWA 

writes  the  whole  body  of  statutes  pertaining  to  the  general 
powers  of  cities.  Since  1897  many  more  additions  and 
amendments  have  been  made  to  the  law.  Space  will  not 
permit  of  the  separate  treatment  of  each  one  of  these  laws ; 
nor  would  such  treatment  be  desirable  as  the  great  ma- 
jority of  the  laws  enacted  were  fragmentary  amendments. 
The  purpose  will  be,  rather,  to  show  the  present  status  of 
the  law  and  to  indicate  what  powers  have  been  granted  to 
cities  in  the  matter  of  enacting  economic  legislation. 

Cities  and  towns  in  this  State  are  political  corporations 
which  have  no  inherent  power  to  make  laws.  They  are 
political  bodies  with  enumerated  powers,  acting  by  dele- 
gated authority  only.°^^  Moreover,  the  statutory  classifica- 
tion of  the  powers  that  have  been  delegated  to  cities  and 
towns  will  be  followed  in  this  discussion. 

Municipal  corporations  are  authorized  to  prevent  nui- 
sances and  to  seize  and  destroy  unsound  meat  and  provi- 
sions. They  have  power  to  regulate,  license,  and  tax  hotels 
and  restaurants;  to  define  and  regulate  transient  mer- 
chants, pawnbrokers,  and  auctioneers;  to  regulate,  license, 
and  tax  peddlers,  bill  posters,  junk  dealers,  scavengers, 
itinerant  doctors  and  surgeons;  to  license  engineers  and 
plumbers;  and  to  license  and  regulate  the  keepers  of  em- 
ployment bureaus.^^^ 

Municipal  corporations  may  legislate  against  the  main- 
tenance of  dangerous  buildings,  and  pass  regulations  to 
prevent  danger  from  accidents  by  fire  or  electricity.  They 
may  establish  fire  limits,  and  regulate  the  material  used  in 
buildings  erected  within  such  limits.  They  may  regulate 
and  control  the  construction  of  all  heating  apparatus,  and 
the  manufacture  of  explosives.  They  may  inspect  steam 
boilers  and  abate  smoke  nuisances.  They  may  also  pre- 
scribe rules  and  regulations  for  the  installation  of  electric 
light  and  power  wiring  and  ajopliances.^^^  And  they  have 
power  to  organize  and  maintain  fire  departments  and  fire 
companies.'^*^ 


POWER  OF  MUNICIPAL  CORPORATIONS  283 

Cities  and  towns  may  establish  and  regulate  markets, 
build  market-places,  regulate  the  measuring  and  weighing 
of  goods  offered  for  sale,  and  prevent  huckstering.^*^  They 
may  establish,  construct,  and  regulate  wharves  and  piers; 
and  they  may  regulate  ferries  within  their  limits.^"*® 

Up  to  this  point  it  appears  that  the  powers  enumerated 
are  simply  a  repetition  of  the  powers  granted  by  the  law  of 
1858.  The  newer  grants  and  those  having  to  do  with  public 
service  utilities  will  now  be  considered. 

Municipal  corporations  in  Iowa  are  authorized  to  legis- 
late in  regard  to  heating  plants,  water  or  gas  works,  and 
electric  plants.  They  have  power  to  purchase  or  erect  and 
to  maintain  and  operate  such  works  within  or  without  the 
limits  of  the  corporation;  and  they  may  lease  or  sell  the 
same.  They  may  grant  the  authority  to  build  and  maintain 
such  plants  or  works  to  individuals  or  private  corporations, 
but  not  for  a  term  of  more  than  twenty-five  years.  Such  a 
grant  may  be  renewed,  extended,  or  amended.  They  may 
make  contracts  for  the  purchase  and  sale  of  the  services  or 
commodities  supplied  by  such  plants,  with  the  same  privi- 
leges and  powers  to  establish  rates  and  collect  rents  as  are 
held  by  cities  having  municipally  owned  plants ;  but  no  such 
plant  may  be  purchased  or  erected  or  sold  or  any  franchise 
be  granted  or  changed  or  contracts  entered  into  in  regard 
to  such  plants  unless  a  majority  of  the  legal  electors  voting 
thereon  vote  in  favor  of  the  proposition  at  a  general,  city, 
or  special  election.  Nor  may  an  exclusive  franchise  be 
granted.^*'^ 

Cities  and  towns  may  submit  to  a  vote  of  the  electors  the 
questions  pertaining  to  the  operation  of  the  plants  referred 
to ;  they  may  condemn  the  land  necessary  for  the  construc- 
tion and  operation  of  such  plants ;  they  may  protect  them ; 
and  when  such  plants  are  operated  by  the  corporations  they 
may  fix  rates  and  taxes.^*^ 

Furthermore,  cities  and  towns  ''shall  have  power  to  re- 


284  ECONOMIC  LEGISLATION  IN  IOWA 

quire  every  individual  or  private  corporation  operating 
such  works  or  plant,  subject  to  reasonable  rules  and  regula- 
tions, to  furnish  any  person  applying  therefor,  along  the 
line  of  its  pipes,  mains,  wires,  or  other  conduits,  with  gas, 
heat,  water,  light  or  power,  and  to  supply  said  city  or  town 
with  water  for  fire  protection,  and  with  gas,  heat,  water, 
light  or  power  for  other  necessary  public  purposes,  and  to 
regulate  and  fix  the  rent  or  rate  for  water,  gas,  heat,  light 
or  power;  to  regulate  and  fix  the  rents  or  rates  of  water, 
gas,  heat  and  electric  light  or  power;  to  regulate  and  fix  the 
charges  for  water  meters,  gas  meters,  electric  light  or  pow- 
er meters,  or  other  device  or  means  necessary  for  deter- 
mining the  consumption  of  water,  gas,  heat,  electric  light  or 
power,  and  these  powers  shall  not  be  abridged  by  ordinance, 
resolution  or  contract.  "°'*^ 

In  addition  to  the  general  powers  enumerated,  every  city 
or  town  situated  on  any  natural  or  artificial  waterway  with- 
in or  bordering  on  the  State  was  authorized  in  1913  to  create 
a  department  of  public  docks,  with  elaborate  powers.^^*' 

Cities  of  the  first  class  have  been  granted  additional  pow- 
ers to  purchase,  construct,  and  operate  water-works. 
Water-works  operated  by  such  a  city  must  be  managed  by  a 
iDoard  of  three  trustees  appointed  by  the  mayor  for  a  term 
of  six  years. ^^^ 

Cities  and  towns  have  been  granted  large  powers  in  the 
matter  of  regulating  streets,  bridges,  and  public  grounds. 
They  have  power  to  establish  and  improve  streets,  bridges, 
and  public  grounds,  and  possess  the  power  necessary  to 
raise  money  to  pay  for  such  improvements.^^^  They  have 
full  power  to  license,  regulate,  and  tax  all  conveyances  and 
means  of  transportation,  including  jitney  busses.  They 
may  also  fix  the  prices  to  be  charged  for  transportation  in 
the  different  vehicles.'^^^ 

In  regard  to  street  railways  the  law  provides  that  ''cities 
and  towns  shall  have  the  power  to  authorize  or  forbid  the 


POWER  OF  MUNICIPAL  CORPORATIONS  285 

construction  of  street  railways  within  their  limits  and  may 
define  the  motive  power  by  which  the  cars  thereon  shall  be 
propelled;  and  to  authorize  or  forbid  the  location  and  lay- 
ing down  of  tracks  for  railways  and  street  railways  on  all 
streets,  alleys  and  public  places;  but  no  railway  track  can 
thus  be  located  and  laid  down  until  after  the  injury  to  prop- 
erty abutting  upon  the  street,  alley  or  public  place  upon 
which  such  railway  track  is  proposed  to  be  located  and  laid 
down  has  been  ascertained  and  compensated  for  in  the  man- 
ner provided  with  reference  to  taking  private  property  for 
works  of  internal  improvement."^^* 

Cities  and  towns  have  power  to  authorize  and  regulate 
the  stringing  of  wires  and  the  erection  of  supports  over  or 
under  the  streets,  but  no  franchise  may  be  granted  for  the 
use  of  the  streets  except  upon  a  favorable  vote  of  the  ma- 
jority of  the  legal  voters  voting  on  the  question  at  a  general 
or  city  election.^^^ 

In  the  matter  of  providing  street  improvements  and  sew- 
ers cities  and  towns  have  broad  powers.  They  may  im- 
prove streets  by  grading,  parking,  curbing,  paving,  gravel- 
ing, macadamizing,  or  guttering ;  and  they  may  provide  for 
the  construction  of  sewers  and  their  appurtenances.  They 
may,  moreover,  levy  special  assessments  to  pay  for  such 
improvements.^^  ^  In  addition  to  the  powers  heretofore 
enumerated  cities  and  towns  have  recently  been  granted 
authority  to  provide  for  the  protection  of  city  property 
from  floods.^^"^ 

The  supply  of  the  services  of  such  utilities  as  water- 
works, sewage  disposal  systems,  street  railways,  telephones, 
gas  works,  electric  plants,  and  heating  plants  to  the  inhab- 
itants of  cities  and  towns  is  a  commercial  proposition.  The 
industries  which  supply  such  services  tend  to  monopoly  and 
can  not,  therefore,  be  left  to  unregulated  private  enterprise. 
An  examination  of  the  several  statutes  granting  power  to 
municipal  corporations  to  legislate  for  the  regulation  of 


286  ECONOMIC  LEGISLATION  IN  IOWA 

such  utilities  shows,  however,  that  there  is  no  consistent 
plan  for  the  regulation  of  public  utilities  in  this  State. 

In  the  matter  of  franchises,  a  municipality  may  authorize 
a  privately  conducted  enterprise  to  construct  and  operate 
heating  plants,  water-works,  gas  plants,  and  electric  light  or 
electric  power  plants.  No  franchise  may  be  authorized  for 
a  longer  period  than  twenty-five  years;  no  exclusive  fran- 
chise may  be  granted ;  and  no  franchise  is  valid  until  it  has 
been  submitted  to  and  ratified  by  the  electors  of  the  city  at 
a  general  or  special  election.^"^ 

Cities  and  towns  can  determine  for  themselves  whether  or 
not  street  railways  shall  be  permitted  within  their  limits. 
They  may  define  the  motive  power  to  be  used  and  determine 
upon  which  streets  and  alleys  tracks  may  be  laid.  There 
seems  to  be  no  time  limit  nor  referendum  for  such  grants. 
But  the  right  to  erect  poles  or  string  wires  can  be  granted 
only  upon  a  referendum  vote.^^^  This  does  not  seem  to  be 
final  in  the  case  of  telephone  lines,  however,  for  the  Su- 
preme Court  has  held  that  under  an  act  authorizing  the 
construction  of  telegraph  or  telephone  lines  along  the  public 
highways  of  the  State  a  city's  consent  is  not  necessary  to 
such  occupation  of  its  streets."®^  Another  decision  ren- 
dered at  a  later  date  holds  the  opposite  view.^^^ 

The  power  of  municipal  corporations  to  pass  police  ordi- 
nances also  varies  according  to  the  class  of  the  utility  com- 
pany concerned.  They  may  require  service  and  fix  the  rates 
to  be  charged  by  gas,  water,  and  electric  companies.  They 
may  regulate  the  location  and  construction  of  street  rail- 
ways and  telephones.  It  appears,  however,  that  the  rates 
and  service  of  street  railways  can  be  regulated  only  by 
franchise  or  contract  and  that  the  rates  and  service  of  tele- 
phone companies  can  be  regulated  by  neither  ordinance  nor 
franchise.^ ''^ 

Nor  does  the  power  of  municipalities  in  Iowa  to  operate 
public  service  industries  extend  to  all  classes  of  utilities 


POWER  OF  MUNICIPAL  CORPORATIONS  287 

alike.  They  may  purchase,  construct,  maintain,  and  oper- 
ate water-works,  and  gas  or  electric  plants  upon  the  affirm- 
ative vote  of  the  qualified  electors  of  the  municipal  corpora- 
tion. But  they  may  not  acquire  or  operate  street  railways 
or  telephones.^  ®^ 


XIII 
TAX  LEGISLATION^^* 

Taxation  and  tax  legislation  play  an  important  part  in 
the  economic  development  of  any  country.  Although  it  may 
be  contended  that  taxation  is  for  the  sole  purpose  of  secur- 
ing revenue  with  which  to  conduct  the  government  or  to 
bring  about  some  desirable  change  in  social  relations,  it 
must  be  kept  in  mind  that  the  State  government  can  not 
collect  any  revenue  without  affecting  economic  and  social 
relations,  that  social  changes  are  influenced  very  decidedly 
by  changes  in  wealth,  and  that  every  tax  affects  the  wealth 
of  individuals  directly.  Indeed  ''taxation  may  create 
monopolies  or  it  may  prevent  them;  it  may  diffuse  wealth 
or  it  may  concentrate  it ;  it  may  promote  liberty  and  equal- 
ity of  rights,  or  it  may  tend  to  the  establishment  of  tyranny 
and  despotism;  it  may  be  used  to  bring  about  reforms,  or  it 
may  be  so  laid  as  to  aggravate  existing  grievances  and 
foster  dissension  and  hatred  between  classes ;  taxation  may 
be  so  contrived  by  the  skillful  hand  as  to  give  free  scope  to 
every  opportunity  for  the  creation  of  wealth  or  for  the  ad- 
vancement of  all  true  interests  of  states  and  cities,  or  it  may 
be  so  shaped  by  ignoramuses  as  to  place  a  dead  weight  on  a 
community  in  the  race  for  industrial  supremacy.  "^^^ 

In  the  brief  outline  of  the  history  of  tax  legislation  in 
Iowa  here  presented  little  will  be  attempted  beyond  trying 
to  show  the  development  as  indicated  by  actual  legislation. 
It  has  been  thought  best  in  this  study  to  discuss  several  spe- 
cial phases  of  taxation  under  other  headings :  that  is  to  say, 
the  taxation  of  railroads,  telegraph  and  telephone  com- 
panies, express  companies,  corporations,  banks,  and  insur- 

288 


TAX  LEGISLATION  289 

ance   companies  has   been   treated   above   in   the   several 
chapters  dealing  with  these  special  subjects. 

TAX  LEGISLATION  DURING   THE   TERRITORIAL   PERIOD 

The  system  of  taxation  which  prevailed  in  the  Iowa  coun- 
try before  it  became  a  separate  Territory  in  1838  was  that 
of  the  Territory  of  Michigan  and  of  the  original  Territory 
of  Wisconsin.  This  system  dated  back  to  the  establishment 
of  the  Territory  of  Michigan  in  1805,  and  was  borrowed 
largely  from  Ohio  and  Virginia.  The  plan  consisted  of 
such  elements  as  the  general  property  tax,  license  taxes, 
and  county  assessment,  and  was  administered  almost  ex- 
clusively by  ex  officio  officials.  These  same  elements  char- 
acterize the  revenue  acts  passed  by  the  first  Legislative 
Assembly  of  the  Territory  of  Iowa,  which  acts  were  bor- 
rowed almost  without  change  from  the  statute  books  of  the 
original  Territory  of  Wisconsin.^®*^ 

The  Organic  Act  creating  the  Territory  of  Iowa  provided 
that  the  legislative  power  of  the  Territory  should  extend  to 
all  rightful  subjects  of  legislation.  Two  limitations  were, 
however,  placed  on  the  taxing  power:  ''no  tax  shall  be  im- 
posed upon  the  property  of  the  United  States ;  nor  shall  the 
lands  or  other  property  of  non-residents  be  taxed  higher 
than  the  lands  or  other  property  of  residents.  "^^"^  The 
first  restriction  still  exists  not  only  in  this  State  but  in  all 
other  States  and  Territories;  the  second  has  lost  all  uni- 
formity and  meaning. 

The  First  Legislative  Assembly  of  the  Territory  met  at 
Burlington  in  November,  1838.  Although  the  expense  of 
the  Territorial  administration  was  low  and  the  greater  part 
of  that  expense  was  borne  by  the  Federal  government,  the 
resident  taxpayers  were  required  to  meet  not  only  the  cost 
of  local  administration,  but  also  a  part  of  the  Territorial 
expenses.  Accordingly,  among  the  several  acts  passed  by 
this  Assembly  were  two  which  provided  for  a  county  and 

19 


290  ECONOMIC  LEGISLATION  IN  IOWA 

Territorial  revenue  system  entitled,  respectively,  "An  Act 
for  assessing  and  collecting  county  revenue"  and  "An  Act 
to  provide  for  a  Territorial  Revenue  ".^^^ 

The  act  pertaining  to  the  assessment  and  collection  of 
county  revenue  is  basic  and  fundamental  in  our  taxing  sys- 
tem. It  made  the  county  the  unit  for  the  levy  and  collection 
of  the  general  property  tax  —  a  position  which  the  county 
still  holds.  The  act  provided  that  the  several  boards  of 
county  commissioners  should  levy  a  tax  on  all  real  property 
and  the  improvements  thereon  and  upon  all  personal  prop- 
erty, for  the  purpose  of  raising  revenue  for  county  pur- 
poses.^®^ 

Provisions  concerning  exemptions,  license  taxes,  and  a 
poll  tax  followed.  Seventy-five  dollars  worth  of  household 
furniture  to  each  householder,  libraries,  tools  of  mechanics, 
and  agricultural  implements  were  exempt  from  taxation. 
An  annual  tax  was  imposed  on  each  license  for  retailing 
spirituous  liquors,  on  each  license  to  vend  merchandise,  on 
each  license  to  peddle  clocks,  and  on  each  ferry.  Other  sec- 
tions referred  to  license  taxes  and  defined  how  and  upon 
whom  they  were  to  be  levied.  A  poll  tax  of  one  dollar  was 
imposed  on  every  qualified  voter  under  sixty  years  of  age. 
The  law  further  stipulated  that  the  levy  should  not  in  any 
case  exceed  five  mills  on  the  dollar.  Nor  should  any  tavern- 
keeper  retail  liquors  without  a  license.^"^^ 

In  the  important  matter  of  administration  the  law  pro- 
vided for  the  annual  election  of  one  assessor  for  each  county 
who  was  required  to  take  oath  and  give  bond.  The  county 
commissioners  were  empowered  to  fill  all  vacancies  in  the 
assessor's  office.  The  assessor  after  qualifying  was  re- 
quired to  assess  all  property  subject  to  taxation  and  deliver 
to  the  board  of  commissioners  the  complete  assessment  roll 
on  or  before  the  first  Monday  in  July.  The  act  defined  in 
detail  the  description  of  property  to  be  contained  in  the 
assessment  roll  and  outlined  the  duties  of  all  officials.^'^^ 


TAX  LEGISLATION  291 

Errors  and  omissions  in  the  assessment  roll  were  to  be 
corrected  on  the  last  Monday  in  June  by  the  assessor  and 
the  clerk  of  the  board  of  commissioners.  The  corrected  roll 
was  then  filed  in  the  clerk's  office,  where  it  was  to  remain  on 
record  as  a  guide  to  future  assessors.  The  county  com- 
missioners were  empowered  to  fix  the  compensation  of  the 

assessor  at  a  rate  which  seemed  just  and  reasonable  to 
them.^'^2 

The  board  of  commissioners,  at  their  July  session  of  each 
year,  determined  the  tax  rate  from  the  corrected  assessment 
roll.  When  the  total  amount  of  property  and  the  rate  of 
taxation  was  determined  the  clerk  was  required  to  calculate 
and  carry  out  the  amount  of  the  taxes  opposite  the  specified 
property,  lots,  or  lands  subject  to  taxation.  The  tax  roll 
was  to  be  completed  in  duplicate  and  one  copy  filed  with  the 
county  treasurer  and  the  other,  together  with  a  precept  in 
the  name  of  the  Territory,  was  delivered  to  the  county  col- 
lector, who  was  the  sheriff  of  the  county.  The  collector  was 
required  to  pay  over  all  moneys  collected  by  him,  with  a 
transcript  of  the  tax-roll  and  an  account  of  his  official  acts, 
together  with  the  precept,  to  the  clerk  of  the  board  of  com- 
missioners on  or  before  the  first  Monday  in  January .^^^ 

Other  provisions  of  the  act  outlined  the  method  of  selling 
property  for  delinquent  taxes  and  of  redeeming  property 
sold  for  taxes,  and  dealt  with  tax  deeds  and  tax  liens.  These 
provisions  are  given  in  detail  and  filled  some  ten  pages  of 
the  statute  book. 

The  act  pertaining  to  Territorial  revenue  was  composed 
of  four  short  sections.  It  provided  that  five  per  cent  of  the 
gross  amount  of  taxes  charged  on  the  assessment  roll 
should  be  set  apart  by  the  county  commissioners  for  the  use 
of  the  Territory.  Each  board  of  county  commissioners  was 
required  to  furnish  the  treasurer  of  the  Territory  with  a 
statement  of  the  amount  due  the  Territory,  together  with  a 
duplicate  assessment  roll.    The  act  specified,  moreover,  that 


292  ECONOMIC  LEGISLATION  IN  IOWA 

the  amount  due  the  Territory  was  to  be  retained  by  the 
county  treasurers  and  paid  from  the  first  funds  returned  by 
the  collectors.  The  several  county  treasurers  were  held 
responsible  for  any  losses  which  might  accrue.^'^'* 

"A  brief  study  of  these  companion  acts",  says  Mr. 
Brindley,  'Svill  convince  the  reader  that  they  are  still  in  a 
very  real  sense  the  basis  of  the  present  revenue  system  of 
Iowa.  While  many  changes  have  been  made  to  meet  new 
conditions,  the  fundamental  outlines  of  our  revenue  system 
have  remained  much  the  same.  To  make  this  point  clear  it 
is  only  necessary  to  recall  the  distinctive  features  of  the 
acts.  Taxes  were  levied  by  a  county  board  of  commission- 
ers, assessed  by  a  county  assessor,  and  collected  by  a  county 
collector  and  his  deputies,  a  portion  thereof  being  paid  into 
the  treasury  of  the  Territory.  From  a  fiscal  standpoint  the 
county  was  thus  made  the  important  unit  of  government 
by  the  first  Legislative  Assembly,  and  in  the  levy  and  collec- 
tion of  taxes  it  has  so  remained  to  the  present  time.  While 
the  county  plan  of  assessment  has  been  supplanted  by  that 
of  the  township  or  precinct,  the  county  still  has  in  charge 
the  collection  of  taxes,  and  through  its  board  of  equaliza- 
tion exercises  a  certain  supervision  over  assessment.  "^'^^ 

The  revenue  laws  of  the  Territory  were  changed  in  1840. 
There  had  been  much  opposition  to  the  taxation  of  im- 
provements on  land,  and  the  actual  settlers  held  that  such 
taxes  discriminated  against  them  in  favor  of  non-resident 
landholders  who  were  holding  lands  for  purposes  of  specu- 
lation.'^"^ The  amendment,  accordingly,  provided  for  the 
assessment  of  real  estate  at  the  actual  value  which  such 
real  estate  would  bear  without  the  improvements  upon  it. 
The  poll  tax  was  made  optional  with  the  board  of  county 
commissioners;  and  merchants  and  storekeepers  were  al- 
lowed to  sell  clocks  without  a  special  license.  And  the 
stock  of  duly  licensed  merchants,  sheep,  school  lands  and 
property,  the  property  of  literary  and  scientific  institi^tions, 


TAX  LEGISLATION  293 

and  all  property  of  the  Territory  were  declared  to  be  ex- 
empt from  taxation.  Provision  was  made  for  an  extension 
of  the  time  granted  to  the  collector  for  making  his  report. 
The  assessor  was  authorized  to  appoint  a  deputy  upon  the 
approval  of  the  county  board,  and  in  case  the  assessor  had 
reason  to  believe  that  any  person  was  not  making  a  true 
statement  of  his  property  he  was  empowered,  at  his  discre- 
tion, to  swear  such  person  to  give  a  true  account  of  the 
quality  and  quantity  of  such  property,  according  to  the  best 
of  his  or  her  knowledge  and  belief.^'^''^ 

Provision  was  made  at  the  same  session  for  the  annual 
election  of  a  county  treasurer  whose  duty  it  was  to  receive 
the  moneys  due  to  the  county  and  to  disburse  the  same  on 
orders  drawn  by  the  board  of  county  commissioners.  He 
was  also  required  to  settle  his  accounts  with  the  board  and 
collect  delinquent  taxes.^"^^ 

An  act  was  passed  by  the  Legislative  Assembly  and  was 
approved  on  January  15,  1841,  which  repealed  and  super- 
seded both  the  former  acts  providing  for  the  assessment  and 
collection  of  county  revenue.  The  new  act  made  few 
changes  beyond  combining  the  two.  All  the  essential  fea- 
tures of  the  former  acts  were  retained,  but  some  changes 
were  made  which  should  be  noted.  The  amount  of  house- 
hold furniture  exempt  to  each  householder  was  increased  to 
one  hundred  dollars ;  several  changes  were  made  in  the  rates 
of  licenses,  and  provision  was  made  whereby  poll  taxes 
could  be  worked  out  on  the  roads.  Landholders  who  were 
unsatisfied  with  the  valuation  placed  upon  their  land  were 
allowed  to  make  complaint  before  the  board  of  county  com- 
missioners, who  were  authorized  to  alter  such  valuation  if 
they  thought  it  too  high.  More  definite  provision  was  also 
made  for  the  delivery  of  a  good  title  to  persons  buying  land 
at  tax  sales.^"^^ 

Dissatisfaction  with  the  Territorial  tax  of  five  per  cent 
which  was  levied  upon  the  gross  tax  receipts  of  the  various 


294  ECONOMIC  LEGISLATION  IN  IOWA 

counties  led  to  the  enactment  in  1841  of  a  law  which  pro- 
vided for  a  regular  millage  tax  for  the  Territory.  This  act 
provided  '  *  that  there  shall  hereafter  be  levied  and  collected 
on  all  taxable  property  within  this  Territory,  one  quarter 
mill's  per  cent,  on  the  value  thereof,  for  Territory  pur- 
poses. "^^^  The  millage  levy  for  State  purposes  has  re- 
mained as  a  permanent  part  of  our  system. 

While  the  rate  of  taxation  was  low  in  Territorial  Iowa 
good  money  was  very  scarce  and  there  was  continuous  agi- 
tation for  a  change  in  the  revenue  system.  The  Legislative 
Assembly  no  sooner  convened  in  1843  than  the  work  of  re- 
drafting the  revenue  laws  was  begun.  When  the  work  was 
done  a  new  law  had  been  placed  upon  the  statute  books 
which  accomplished  three  things:  it  provided  a  township 
system  of  assessment;  it  levied  a  Territorial  tax  on  the 
basis  of  property  in  the  respective  counties ;  and  it  required 
the  payment  of  the  Territorial  revenue  to  be  made  in 
cash.°^^ 

The  next  Legislative  Assembly  enacted  a  new  revenue 
law  which  w^as  approved  on  February  15, 1844.  It  did  little 
more  than  rewrite  the  previous  law  in  simpler  form.  The 
whole  working  machinery  of  the  revenue  system  was  left 
essentially  the  same.  There  were,  however,  a  few  changes 
which  should  be  noted.  Many  additions  were  made  to  the 
list  of  exempted  property.  Mortgaged  personal  property 
was  deemed  to  be  the  property  of  the  possessor  for  pur- 
poses of  taxation ;  money  at  interest  and  stocks  in  corpora- 
tions or  associations  were  defined  as  personal  property  and 
were  to  be  taxed  at  their  true  value ;  Territorial  taxes  could 
be  paid  in  either  cash  or  in  Territorial  orders  or  warrants ; 
and  a  half-mill  was  levied  for  Territorial  revenue.^*^ 

It  will  be  remembered  that  the  early  acts  pertaining  to 
the  collection  of  the  revenue  provided  for  a  county  assessor 
and  that  the  later  laws  had  established  a  township  or  pre- 
cinct system.    There  was  constant  strife  between  the  ad- 


TAX  LEGISLATION  295 

herents  of  these  two  forms  of  local  government,  and  in  1845 
those  who  favored  the  county  system  secured  the  passage  of 
a  law  which  provided  for  a  return  to  the  county  plan  of 
assessment.^^^  The  duties  of  the  county  assessor  were 
clearly  defined  by  an  act  approved  on  January  2, 1846.^*"* 

Agitation  for  statehood  had  been  carried  on  since  1840, 
but  it  was  opposed  by  those  who  feared  it  would  mean 
higher  taxes.  Finally,  a  favorable  vote  for  State  govern- 
ment was  secured  in  1844.  Two  constitutional  conventions 
were  held,  however,  before  Iowa  became  a  State  on  Decem- 
ber 28,  1846. 

The  Territorial  period  was  one  of  change  and  experiment 
in  tax  legislation,  and  the  general  outlines  of  our  present 
revenue  system,  both  local  and  central,  were  created.  In 
spite  of  the  many  changes  that  were  made  in  the  revenue 
laws  during  this  period  it  appears  that  they  never  produced 
the  needed  revenue.  The  period  began  and  ended  with  the 
county  system  of  assessment.  The  problem  of  the  basis  of 
the  assessment  of  property  was  finally  settled  in  favor  of 
the  assessment  of  property  at  its  cash  value,  taking  into 
consideration  certain  factors  specified  in  the  law.  It  was 
also  decided  that  the  improvements  on  land  should  be  in- 
cluded in  the  valuation  for  the  purpose  of  taxation ;  and  the 
millage  rate  on  property  for  Territorial  revenue  displaced 
the  system  of  apportioning  such  revenue  according  to  the 
gross  tax  receipts  of  the  various  counties.^^^ 

TAX  LEGISLATION  FEOM  1846  TO  1857 

The  Constitution  of  1846  under  which  Iowa  was  admitted 
into  the  Union  contained  only  a  general  reference  to  the 
subject  of  taxation.  It  provided  that  ''all  laws  of  a  general 
nature  shall  have  a  uniform  operation",  and  that  each 
house  ''shall  have  all  other  powers  necessary  for  a  branch 
of  the  general  assembly  of  a  free  and  independent  state.  "^^^ 

The  new  State  came  into  the  Union  with  an  empty  treas- 


296  ECONOMIC  LEGISLATION  IN  IOWA 

ury  and  a  badly  administered  and  defective  revenue  system. 
The  need  for  a  revision  of  the  tax  legislation  was  recog- 
nized, but  the  evils  of  bad  administration  were  lost  sight  of 
in  the  agitation  for  a  system  of  assessment  which  would 
exempt  the  improvements  on  land.  The  new  revenue  law 
which  was  approved  on  February  25,  1847,  was,  however,  a 
victory  for  the  adherents  of  the  so-called  ad  valorem  system 
of  taxation:  the  improvements  on  land  were  not  exempt- 
ed.^^"^ 

The  new  law  specified  that  ''all  real  and  personal  prop- 
erty of  whatever  kind,  shall  be  assessed  and  taxable"  with 
the  exception  of  enumerated  exempt  property.  The  ex- 
emptions were  about  the  same  as  those  in  the  earlier  laws ; 
and  the  taxable  property  was  enumerated  at  greater  length. 
Among  the  specific  enumerations  were  the  following:  ''all 
town  lots  or  lands  with  improvements  thereon",  and  "every 
annuity,  together  with  all  moneys  invested  in  property,  of 
any  kind,  and  secured  by  deed,  mortgage,  or  other  evidence 
of  claim".  Provision  was  made,  however,  for  the  deduction 
of  debts  from  the  amount  of  moneys  and  credits  listed  for 
taxation.  A  poll  tax  of  fifty  cents  on  every  man  over 
twenty-one  years  of  age  was  prescribed.  The  provisions 
relating  to  license  taxes  were  simple  and  the  number  of 
such  taxes  was  greatly  reduced.  Indeed,  it  appears  that 
the  law  of  1847  marks  a  movement  away  from  this  form  of 
taxation.  In  the  important  matter  of  administration  no 
improvements  were  made  over  the  earlier  laws.^^^ 

An  amendatory  act  passed  at  the  extra  session  of  the 
General  Assembly  in  1848  improved  the  administration  of 
the  revenue  law.  County  officials  were  required  under  pen- 
alty to  furnish  the  Auditor  of  State  with  such  information 
in  regard  to  the  State  revenue  as  he  should  require.^*^^  This 
gave  to  the  State  its  first  real  fiscal  authority. 

The  next  change  in  the  revenue  system  is  found  in  the 
Code  of  1851  which  became  operative  on  July  1,  1851.    The 


TAX  LEGISLATION  297 

machinery  for  levying  and  collecting  taxes  was  improved. 
There  was  a  more  logical  classification  of  taxable  property 
and  of  property  exempt  from  taxation ;  and  provision  was 
made  for  a  Census  Board  which  was  given  some  authority 
in  the  correction  of  assessments  and  the  equalization  of 
taxes. 

The  chapter  on  Revenue  contained  the  following  subdi- 
visions: taxes  to  be  levied,  rate  fixed  by  law  for  State, 
county,  and  local ;  property  exempt  from  taxation ;  property 
liable  for  taxation;  by  whom,  w^here,  and  in  what  manner, 
property  is  to  be  listed  and  assessed;  the  assessment  roll, 
the  correction  thereof,  and  the  tax  list ;  and  finally,  the  col- 
lection of  taxes.®^^ 

Under  the  provisions  of  this  Code  the  levy  was  made  on 
all  taxable  property  by  the  county  court,  which  fixed  the 
rate  within  the  following  specified  limitations:  for  State 
revenue,  three  mills  on  the  dollar,  when  no  rate  was  deter- 
mined by  the  Census  Board ;  for  ordinary  county  revenue, 
including  the  support  of  the  poor,  not  more  than  six  mills 
on  the  dollar,  and  a  poll  tax  of  fifty  cents ;  for  the  support  of 
schools,  not  less  than  one-half  mill  nor  more  than  one  and 
one-half  mills  on  the  dollar ;  and  for  roads  and  bridges,  be- 
tween one  and  three  mills  on  the  dollar  on  the  amount  of 
the  county  assessment,  unless  a  higher  rate  was  established 
by  a  vote  of  the  people  of  the  county  upon  the  question  be- 
ing submitted  in  the  usual  manner.^''^ 

All  property,  real  and  personal,  within  the  State,  except 
that  specifically  exempted  by  statute  was  subject  to  taxa- 
tion. This  embraced  lands,  lots  in  towns,  ferry  franchises, 
horses,  cattle,  mules,  asses,  sheep,  and  swine,  money  either 
in  possession  or  on  deposit,  debts  due,  mortgages,  securi- 
ties, accounts  bearing  interest,  shares  of  stock,  boats  and 
vessels,  annuities,  furniture,  libraries,  vehicles,  musical  in- 
struments, and  ''all  other  property  not  above  exempted 
although  not  herein  specified. '  ^^^^ 


298  ECONOMIC  LEGISLATION  IN  IOWA 

An  additional  poll  tax  for  road  purposes  was  required, 
which  was  to  be  not  less  than  one  nor  more  than  two  dollars 
per  year  — r  which  might  be  paid  in  labor.^^^  The  system  of 
license  taxation  was  simple  and  the  number  of  licenses 
•fg^y  594  Little  that  is  new  was  included  in  the  exemption 
list :  a  more  complete  summary  of  public  property  was  in- 
cluded, and  mutual  insurance  companies  were  added.^^^ 
The  term  credit  was  defined,  and  any  person  was  entitled  to 
deduct  all  bona  fide  debts  owed  by  him  from  the  gross 
amount  of  his  moneys  and  credits.^®^  Merchants  and  man- 
ufacturers were  required,  in  listing  their  property  for  taxa- 
tion, to  take  the  average  value  of  the  property  in  their 
possession  or  control  during  the  year  just  previous  to  the 
time  of  listing.®^"^ 

The  county  judge,  clerk,  and  treasurer  were  made  to  con- 
stitute a  county  board  of  equalization,  and  the  Census 
Board  was  intrusted  with  the  work  of  State  equalization.^^^ 
The  provisions  relative  to  delinquent  taxes  were  also  made 
more  clear  and  definite  than  under  the  old  laws  ;^^^  and  the 
system  of  administration  was  much  improved. 

^'The  system  of  taxation  outlined  in  the  Code  of  1851,  em- 
bracing as  it  did  a  plan  of  county  assessment  and  collection, 
a  combination  of  State  and  local  levy  made  within  certain 
well  defined  statutory  limitations,  and  finally  a  dual  scheme 
of  local  and  central  equalization,  forms  a  close  approxima- 
tion to  the  revenue  laws  now  in  force.  When  we  add  to  this 
the  evolution  of  specific  methods  of  taxing  insurance  com- 
panies and  certain  other  corporations,  it  appears  that  more 
than  half  a  century  ago  something  like  a  modern  system  of 
taxation  was  being  created  —  that  is  to  say,  it  was  about  as 
modern  as  anything  that  has  thus  far  been  developed  in 
Iowa."««<^ 

The  provisions  of  the  Code  of  1851  did  not  remain  long 
unchanged.  A  system  of  township  assessors  was  reestab- 
lished in  place  of  the  county  assessor  by  an  act  approved  on 


TAX  LEGISLATION  299 

January  22,  1853.  Such  assessors  in  conjunction  with  the 
county  judge  were  thereafter  to  form  the  county  board  for 
the  equalization  of  assessments.  Certain  slight  changes 
were  made  in  the  provisions  relative  to  exemptions  and  sev- 
eral additional  license  taxes  were  included.^^^  A  return  to 
the  former  system  of  county  assessment  was  made  in  1857 
and  the  Census  Board  was  definitely  retained  as  a  State 
board  of  equalization.  It  was  to  meet  every  two  years  for 
the  purpose  of  equalizing  the  valuation  of  real  property 
among  the  several  counties  and  towns  in  the  State.^^^ 

TAX  PEOVISIONS  IN  THE  CONSTITUTION  OF  1857 

The  present  Constitution  of  Iowa  which  was  adopted  in 
1857  contains  several  important  provisions  pertaining  to 
the  exercise  of  the  taxing  power.  The  provision  that  "all 
laws  of  a  general  nature  shall  have  a  uniform  operation" 
was  retained.  It  was  further  provided  that  *'the  General 
Assembly  shall  not  pass  local  or  special  laws  .... 
for  the  assessment  and  collection  of  taxes  for  State,  Coun- 
ty, or  road  purposes".  The  clause  of  the  Constitution 
which  has  probably  had  the  greatest  influence  on  the  history 
of  taxation  in  the  State  is  that  section  which  provides  that 
''the  property  of  all  corporations  for  pecuniary  profit,  shall 
be  subject  to  taxation,  the  same  as  that  of  individuals.  "^*^^ 

Another  important  provision  of  the  Constitution  of  1857 
limits  the  power  of  a  county  or  other  political  or  municipal 
corporation  in  contracting  debts  to  an  amount  not  exceeding 
in  the  aggregate  five  per  cent  of  the  value  of  the  taxable 
property  within  such  county  or  corporation.  Finally,  "the 
credit  of  the  State  shall  not,  in  any  manner,  be  given  or 
loaned  to,  or  in  aid  of,  any  individual,  association,  or  cor- 
poration ' '.  Nor  shall  the  State  contract  debts  in  a  greater 
amount  than  two  hundred  and  fifty  thousand  dollars. ^"^ 


300  ECONOMIC  LEGISLATION  IN  IOWA 

LEGISLATION  PERTAINING  TO  TAXATION  1857-1873 

The  period  from  1857  to  1873  was  one  of  administrative 
decentralization,  during  which  very  little,  if  any,  progress 
was  made  in  the  development  of  a  suitable  revenue  system 
for  the  State.  An  act  of  1858  re-stated  almost  the  entire 
body  of  the  revenue  laws  of  the  State,  but  it  left  the  system 
as  a  whole  very  much  as  it  was  before.  The  most  important 
change  made  by  this  lengthy  act  was  a  third  return  to  the 
township  system  of  assessment.  The  new  limitations  in 
rates  should,  however,  be  noted.  The  following  limits  were 
set:  for  State  revenue  three  mills  on  the  dollar,  when  no 
rate  had  been  directed  by  the  Census  Board;  for  ordinary 
county  revenue,  including  the  support  of  the  poor,  not  more 
than  six  mills,  and  a  poll  tax  of  fifty  cents ;  for  the  support 
of  schools  not  less  than  one  nor  more  than  two  and  a  half 
mills  on  the  dollar;  for  building  and  repairing  bridges,  not 
more  than  one  mill  on  the  dollar  whenever  such  tax  was 
established  by  a  vote  of  the  people  of  the  county,  upon  the 
question  being  submitted  to  them  according  to  law.^^^  Two 
days  labor  on  the  roads  was  also  required  of  every  able- 
bodied  man  between  the  ages  of  twenty-one  and  forty-five 
years. "^^"^ 

The  law  of  1858  was  reproduced  with  few  important 
changes  in  the  Revision  of  1860.^^'^  Some  improvement  was 
made  in  the  law  in  the  matter  of  collecting  delinquent  taxes 
and  with  regard  to  the  deeds  given  in  the  event  of  the  sale  of 
property  for  taxes.^^^  A  material  reduction  of  the  rate  was 
also  permitted  by  the  law  as  it  appears  in  the  Revision  of 
1860.  The  following  rates  were  specified :  for  State  revenue, 
one  and  one-half  mills  when  no  rate  was  determined  by  the 
Census  Board,  but  in  no  case  more  than  two  mills ;  for  ordi- 
nary county  revenue,  including  poor  relief,  not  over  four 
mills,  and  a  poll  tax  of  fifty  cents;  for  school  support,  not 
less  than  one  nor  more  than  two  mills  on  the  dollar ;  and  for 
bridges,  one  mill  whenever  the  board  of  supervisors  should 


TAX  LEGISLATION  301 

deem  it  necessary.^^^  The  rate  for  State  purposes  was  in- 
creased, however,  by  an  amendment  which  was  approved  on 
May  27, 1861.«i« 

The  extraordinary  financial  strain  caused  by  the  Civil 
War  was  beginning  to  be  felt  when  the  Ninth  General  As- 
sembly met  in  1862.  One  of  the  first  acts  passed  at  this 
session  provided  for  the  payment  of  taxes  in  the  new  treas- 
ury demand  notes,  which  were  being  issued  by  the  general 
government,  and  in  the  notes  issued  by  the  various  branches 
of  the  State  Bank  of  Iowa,  provided  that  the  notes  of  the 
branches  of  the  State  Bank  of  Iowa  were  not  to  be  received 
for  such  payment  after  any  one  of  the  branches  should  fail 
to  redeem  its  notes.^^^  Provision  was  also  made  for  the 
assessment,  levy,  and  collection  of  the  State's  quota  of  the 
Federal  tax  which  had  been  authorized  by  Congress  on 
August  5,  1861.  The  act  authorized  a  levy  of  two  mills  on 
the  assessment  of  1861  and  provided  for  its  collection.®^^ 

Little  more  was  accomplished  in  the  way  of  tax  legislation 
before  the  adoption  of  the  Code  of  1873.^^^  Certain  addi- 
tional provisions  were  made  in  exempting  certain  lands 
used  for  growing  fruit  and  forest  trees  as  an  encourage- 
ment to  the  use  of  land  for  such  purposes. ®^^  One  other 
act,  which  has  remained  as  a  permanent  feature  of  our  rev- 
enue laws  and  which  has  done  much  to  simplify  the  assess- 
ment roll,  should  be  mentioned.  This  law  provided  that 
uniform  taxes  should  be  placed  on  the  tax  list  in  a  single 
column  and  called  a  consolidated  tax,  and  that  tax  receipts 
should  be  printed  to  show  the  per  cent  levied  for  each  sep- 
arate fund.^^^  Other  acts  increased  the  maximum  levy  for 
road  purposes  to  five  mills,  increased  the  rate  to  create  a 
sinking  fund  in  cities  to  two  mills,  and  authorized  counties 
to  create  and  maintain  high  schools.^^®  Finally,  still  other 
acts  were  passed  placing  limitations  on  the  local  taxing 
power.^^*^ 

The  legislation  enacted  during  the  period  under  consid- 


302  ECONOMIC  LEGISLATION  IN  IOWA 

eration  (1857  to  1872)  accomplished  certain  things:  the 
jfiscal  power  of  the  State  was  strengthened ;  tax  titles  were 
made  more  secure ;  the  fiscal  reports  submitted  to  the  State 
by  the  counties  were  required  to  be  more  complete  and  ac- 
curate ;  and  progress  was  made  in  the  solution  of  the  delin- 
quent tax  problem.  A  more  efiQcient  system  of  collecting 
State  taxes  was  developed.  In  the  matter  of  administration 
the  principle  of  decentralization  held  sway  and  dissatisfac- 
tion resulted.  It  was  a  period  of  high  taxes,  due  in  part  to 
the  war  and  in  part  to  the  rapid  industrial  development 
after  the  war.  The  maximum  levies  authorized  by  law  in 
1872  varied  from  eighty  mills  in  rural  districts  to  more 
than  ninety-six  mills  in  some  cities. ^^^ 

TAX  LEGISLATION  FROM  1873  TO  1917 

The  Code  of  1873  marks  no  new  advance  in  the  revenue 
system  of  the  State.  The  Census  Board  was  superseded  by 
a  board  known  as  the  Executive  Council  —  consisting  of 
the  Governor,  Secretary  of  State,  Auditor  of  State,  and 
Treasurer  of  State  —  and  other  minor  changes  were  made, 
but  the  old  system  remained  almost  unchanged.®^^ 

It  was  generally  recognized  that  the  system  was  defective 
and  that  property  was  reported  and  assessed  at  much  less 
than  its  actual  value.  Assessments  were  grossly  unequal; 
real  property  was  assessed  at  about  one-third  of  its  value ; 
the  motive  or  standard  of  value  governing  the  assessor  was 
an  unknown  quantity;  and  finally,  the  work  of  the  various 
boards  of  equalization  in  correcting  inequalities  of  assess- 
ment was  nominal  and  not  real.  These  evils  were  recog- 
nized as  existing,  but  there  was  no  definite  program  for 
their  correction. 

There  was  almost  constant  agitation  for  reform  during 
the  next  decade,  but  aside  from  minor  acts  relative  to  li- 
cense taxes,  exemptions,  and  limitations  no  improvement 
was  made  in  the  revenue  laws  of  the  State.    Agitation  was 


TAX  LEGISLATION  303 

carried  on  for  more  than  six  years  before  a  law  providing 
for  the  semi-annual  payment  of  taxes  could  be  secured. *^-*^ 

That  the  general  property  tax  was  a  failure  from  the 
standpoint  of  administration  was  recognized.  The  revenue 
laws  did  not  guarantee  justice  between  individuals  or  local 
units  of  government  under  the  existing  industrial  condi- 
tions; nor  do  they  guarantee  such  justice  to-day.  *' Since 
the  first  revenue  act  was  passed  in  1839",  says  Mr.  Brindley 
in  his  History  of  Taxation  in  Iowa  in  1910,  ''an  effort  has 
been  made  to  create  an  efficient  system  of  taxation  by  the 
enactment  of  law.  The  whole  body  of  this  fiscal  legislation 
may  be  conveniently  classified  under  two  heads :  first,  laws 
establishing  general  machinery  for  the  levy,  assessment, 
equalization,  and  collection  of  taxes ;  second,  laws  relating 
to  specific  problems  in  taxation.  In  this  connection  it  is  not 
possible  to  give  absolute  dates.  It  has  already  been  noted 
that  the  main  outlines  of  our  general  revenue  system  are  to 
be  found  in  the  Code  of  1851.  When  the  Code  of  1873  and 
more  especially  the  semi-annual  tax  law  of  1884  are  reached 
we  are  brought  face  to  face  with  what  is  practically  the 
fiscal  system,  State,  county,  and  local,  of  to-day.  "^^^ 

Little  more  remains  to  be  said  in  regard  to  the  develop- 
ment of  the  general  revenue  system  in  this  State.  There 
has  been  an  almost  continuous  agitation  for  a  revision  of 
the  revenue  laws,  but  little  has  been  accomplished.  Gov- 
ernor Boies  in  1892  recommended  the  creation  of  a  tax 
commission  to  study  the  needs  and  defects  of  the  revenue 
system  and  to  report  a  bill  to  the  General  Assembly.  It 
was  his  belief  that  during  a  session  of  the  General  Assembly 
there  was  not  sufficient  time  for  the  adequate  consideration 
and  revision  of  the  revenue  laws.*'-^ 

The  Twenty-fourth  General  Assembly,  in  compliance  with 
the  recommendations  of  Governor  Boies,  passed  an  act 
which  provided  for  a  temporary  commission  of  four  mem- 
bers named  by  the  Executive  Council.     It  was  made  the 


304  ECONOMIC  LEGISLATION  IN  IOWA 

duty  of  the  commission  to  investigate  the  laws  and  report 
necessary  changes. ^^^  The  commission  studied  the  laws  and 
the  general  revenue  situation  and  drafted  a  rather  conser- 
vative bill  which  was  submitted  to  the  Twenty-fifth  General 
Assembly  with  the  report  of  the  commission.  The  main 
feature  of  the  report  was  the  consideration  of  the  proper 
method  of  valuation  and  the  most  noticeable  feature  of  the 
proposed  bill  was  the  attempt  to  prevent  the  gross  under- 
valuation of  property  and  the  consequent  inequalities  of 
assessment.*^-^  The  General  Assembly  failed,  however,  to 
enact  any  legislation  in  line  with  the  recommendations  of 
the  commission. 

Until  1897  the  attempt  had  been  consistently  made  to  tax 
all  property  at  its  full  cash  value.  The  attempt  had  always 
failed  of  realization,  and  the  failure  was  admitted  in  the 
Code  of  1897  which  provides  that  ''all  property  subject  to 
taxation  shall  be  valued  at  its  actual  value,  which  shall  be 
entered  opposite  each  item,  and  shall  be  assessed  at  twenty- 
five  per  cent,  of  such  actual  value.  Such  assessed  value 
shall  be  entered  in  a  separate  column  opposite  each  item, 
and  is  to  be  taken  and  considered  as  the  taxable  value  of 
such  property,  and  the  value  at  which  it  shall  be  listed  and 
upon  which  the  levy  shall  be  made.  Actual  value  of  prop- 
erty as  used  in  this  chapter  shall  mean  its  value  in  the 
market  in  the  ordinary  course  of  trade.  "^'^^ 

The  General  Assembly  continued  to  enact  legislation  at 
succeeding  sessions,  but  no  fundamental  changes  were  made 
in  the  revenue  system.  A  tax  ferret  system  —  created 
largely  for  the  purpose  of  securing  a  more  complete  listing 
of  moneys  and  credits  —  was  established  in  1900. ^-^^  There 
was  much  dissatisfaction,  however,  with  this  method  of  lo- 
cating property  withheld  from  taxation,  and  so  the  system 
was  abolished  in  1911.*^^"^  The  same  General  Assembly 
which  abolislied  the  tax  ferret  system  provided  for  the  tax- 
ation of  moneys  and  credits  at  a  flat  rate  of  five  mills  on  the 


TAX  LEGISLATION  305 

dollarj^'^s  but  this  law  has  not  improved  the  situation  to  any- 
appreciable  extent. 

An  attempt  was  made  in  1907  and  again  in  1909  to  have 
the  General  Assembly  provide  for  a  tax  commission,  but 
these  efforts  failed.^^^  In  his  biennial  message  to  the  Gen- 
eral Assembly  in  1911  Governor  Carroll  recommended  the 
creation  of  a  tax  commission  "to  study  carefully  all  the 
phases  of  the  taxing  question,  prepare  an  entire  new  rev- 
enue code  and  submit  it  to  the  next  session  of  the  General 
Assembly.  "^^^  The  General  Assembly  complied  with  this 
recommendation  and  a  commission  consisting  of  five  men 
was  provided  for.  The  commission  was  ''to  examine  into 
tax  assessment,  tax  levy  and  tax  collection  laws  of  the  state 
of  Iowa,  and  of  other  states,  and  use  such  means  and  make 
such  investigations  as  it  shall  deem  best  to  secure  informa- 
tion, for  the  purpose  of  ascertaining  whether  the  present 
laws  of  the  state  of  Iowa  regulating  the  assessment,  levying 
and  collection  of  taxes  may  not  be  improved,  and  to  report 
its  findings  together  with  such  recommendations  as  it  may 
deem  desirable,  to  the  governor  ....  The  report  and 
recommendations  of  the  commission  shall  be  transmitted  by 
the  governor  to  both  branches  of  the  general  assembly  of 
1913  ".«3i 

The  report  and  recommendations  of  the  commission  were 
placed  before  the  General  Assembly  in  1913.  The  report 
criticized  the  present  system  in  very  severe  terms.  It  de- 
clared that  the  chief  defect  in  our  revenue  law  was  its  fail- 
ure to  provide  adequate  administrative  machinery.  Accord- 
ingly, it  recommended  such  changes  "as  would  provide  for 
the  state  as  a  whole,  a  permanent  tax  commission,  having 
general  supervisory  powers  throughout  the  state,  and  an 
officer  of  each  county  to  be  known  as  county  assessor,  who 
would  have  general  supervision  of  the  work  of  taxation  in 
the  counties,  such  officer,  however,  to  be  under  the  general 
control  of  the  state  commission.  "*^^^ 

20 


306  ECONOMIC  LEGISLATION  IN  IOWA 

The  report  of  the  commission  included  a  proposed  bill 
which  revised  and  rearranged  the  entire  revenue  law  and 
embodied  the  changes  recommended  by  the  commission.  A 
bill  very  similar  to  that  proposed  by  the  tax  commission 
was  introduced  in  the  General  Assembly,  but  failed  of  pas- 
sage.^^^  An  attempt  was  again  made  in  1915  to  secure  a 
revision  of  the  revenue  laws  and  the  creation  of  a  perma- 
nent State  tax  commission,  but  this  attempt  also  ended  in 
failure.^** 

THE  INHIJBITANCE  TAX 

An  inheritance  tax  or  an  income  tax  involves  the  idea  of 
a  redistribution  of  property  more  directly  than  does  an 
ordinary  property  tax  levied  according  to  the  value  of  the 
property  held  and  irrespective  of  the  amount,  so  that  the 
general  acceptance  of  these  forms  of  taxation  indicates  a 
changing  attitude  toward  private  property  and  the  right  to 
use  it  and  dispose  of  it  as  the  owner  may  please. 

Only  a  few  of  the  States  of  the  Union  have  as  yet  pro- 
vided for  the  levy  of  an  income  tax ;  at  the  same  time  most 
of  them  have  some  form  of  an  inheritance  tax.  Some  of  the 
States  levy  a  direct  inheritance  tax,  but  the  greater  num- 
ber, of  which  Iowa  is  one,  levies  a  collateral  inheritance  tax 
only.  The  revenue  commission  of  1893  recommended  an  in- 
heritance tax,  but  it  was  not  until  1896  that  a  law  providing 
for  such  a  tax  was  passed. ®^^ 

The  law  as  passed  in  1896  imposed  a  tax  of  five  per  cent 
on  all  estates  of  one  thousand  dollars  or  over,  after  deduct- 
ing legal  debts,  passing  to  collateral  heirs  or  strangers  to 
the  blood.  Special  provisions  were  made  for  estates  be- 
queathed for  a  term  of  years  to  lineal  descendants  and  the 
remainder  to  a  collateral  heir,  and  for  the  disposal  of  life 
estates.  The  administrative  machinery  provided  was  de- 
fective, and  so  the  result  was  more  or  less  of  a  failure.^'^'' 

A  more  centralized  administrative  control  was  provided 


TAX  LEGISLATION  307 

in  1898.  Minor  amendments  were  passed  in  1900  and  in 
1902,  and  the  Thirtieth  General  Assembly  imposed  a  dis- 
crimination against  non-residents  of  the  United  States.'^^'^ 

The  Thirty-fourth  General  Assembly  completely  re- 
drafted the  collateral  inheritance  law  in  1911.®^^  The  new 
act  improved  the  administrative  machinery  of  the  law; 
while  the  tax  remains  the  same.  That  is  to  say,  all  property 
of  whatever  kind  situated  in  this  State  which  passes  to  col- 
lateral heirs  upon  the  death  of  the  owner  is  taxed  five  per 
cent  —  except  that  property  passing  to  aliens,  non-resi- 
dents of  the  United  States,  is  subject  to  a  tax  of  twenty  per 
cent  of  its  true  value.  In  case  foreign  beneficiaries  are 
brothers  or  sisters  of  the  decedent  owner  the  tax  is  only  ten 
per  cent.  Estates  of  not  more  than  one  thousand  dollars 
are  exempt  as  are  those  of  whatever  size  which  pass  to 
direct  heirs.  Exemptions  are  also  made  in  favor  of  be- 
quests for  certain  charitable  and  public  purposes. 

The  district  court  of  each  county  appoints  yearly  three 
resident  freeholders  to  appraise  all  property  subject  to  the 
inheritance  tax.  Special  appraisers  may  also  be  appointed 
in  any  given  case.  The  appraised  value  is  required  to  be 
the  market  value  of  the  property.  The  tax  is  paid  to  the 
State  Treasurer  and  is  a  lien  upon  the  estate  until  paid. 
Unless  paid  within  eighteen  months,  interest  at  the  rate  of 
eight  per  cent  is  added  from  the  date  of  the  death  of  the 
decedent.  This  tax  returns  to  the  State  treasury  a  little 
more  than  a  quarter  of  a  million  dollars  annually. 

THE  PRESENT  REVENUE  SYSTEM  639 

The  state  of  Iowa  depends  almost  entirely  upon  the  gen- 
oral  property  tax  for  State,  county,  and  municipal  reve- 
nues. There  is  a  State  inheritance  tax  on  collateral  in- 
heritances. There  are  no  special  corporation  taxes  except 
on  foreign  insurance  companies.  Corporations  are  gener- 
ally assessed  by  local  assessors ;  but  a  few  are  assessed  on 


308  ECONOMIC  LEGISLATION  IN  IOWA 

their  property  by  the  State  Executive  Council.  There  have 
been  some  recent  changes  from  taxes  on  gross  revenues  to 
those  on  property. 

The  Basis  of  Assessment  and  Valuation: — All  property 
both  real  and  personal  not  specifically  exempt  is  subject  to 
the  general  property  tax.  Indeed,  it  is  an  established  prin- 
ciple of  law  that  taxation  is  the  rule  and  exemption  from 
taxation  the  exception.  The  Iowa  revenue  laws,  however, 
provide  very  liberal  exemptions.  In  addition  to  public 
property  —  that  is,  property  belonging  to  one  of  the  various 
units  of  government  —  all  the  property  privately  owned 
but  devoted  to  public  use  and  not  made  the  basis  of  private 
gain  is  exempt.  This  class  of  property  embraces  the  prop- 
erty of  charitable,  benevolent,  literary,  scientific,  agricul- 
tural, and  religious  institutions  or  associations  which  is 
devoted  solely  to  the  appropriate  objects  of  such  associa- 
tions. The  amount  of  land  which  may  be  exempted  for  this 
purpose  is  limited  to  one  hundred  and  sixty  acres. 

Liberal  exemptions  of  farm  produce  and  farm  animals, 
machinery,  and  furniture  are  provided.  Landowners  are 
not  allowed  to  deduct  their  debts  from  the  value  of  their 
real  estate,  but  allowance  is  made  for  lands  taken  up  by 
adjacent  roads.  Tools  of  mechanics,  funds  held  by  fraternal 
beneficiary  associations,  a  certain  amount  of  the  property  of 
soldiers  of  the  Rebellion,  and  finally,  the  polls  or  estates  of 
persons  who  are  unable  to  contribute  to  the  public  revenue 
on  account  of  age  or  infirmity. 

In  the  matter  of  assessment  and  valuation  the  law  re- 
quires that  all  the  property  subject  to  ad  valorem  taxation 
shall  be  listed  at  its  actual  value  —  which  has  been  inter- 
preted by  the  courts  to  mean  what  the  property  will  bring 
in  the  ordinary  course  of  trade  and  not  at  a  forced  sale. 
The  property  is  then  assessed  for  taxation  at  twenty-five 
per  cent  of  its  actual  value.    There  are,  however,  many  ex- 


TAX  LEGISLATION  309 

ceptions  to  this  provision.  Moneys,  credits,  and  corporation 
shares  or  stocks,  unless  exempted  from  taxation  or  assessed 
in  some  other  manner,  and  excepting  shares  of  national, 
State,  and  savings  banks,  loan  and  trust  companies,  and 
moneyed  capital  in  competition  with  banks,  are  taxed  at  a 
flat  rate  of  five  mills  on  the  dollar  of  actual  valuation,  to  be 
assessed  and  collected  where  the  owner  resides.  The  shares 
of  national.  State,  and  savings  banks,  the  stock  of  loan  and 
trust  companies,  and  moneyed  capital  in  competition  with 
banks  are  assessed  and  taxed  at  twenty  per  cent  instead  of 
twenty-five  per  cent  of  their  actual  value.  The  property  of 
private  bankers  is  listed  at  the  aggregate  actual  value  of 
moneys  and  credits,  less  deposits,  and  the  aggregate  value 
of  bonds  and  stocks  less  the  portion  thereof  otherwise  taxed 
in  this  State.  All  other  property  including  real  estate  is 
assessed  in  the  usual  manner.  In  listing  moneys  and  cred- 
its in  general,  including  the  actual  value  of  shares  in  build- 
ing and  loan  associations,  the  owner  is  entitled  to  deduct 
the  amount  of  his  just  debts.  Moreover,  the  shares  of  stock 
in  manufacturing  companies  are  exempt  from  taxation  in 
case  their  real  estate  and  personal  property,  including 
moneys  and  credits,  have  been  properly  listed.  No  deduc- 
tions of  debts  may  be  allowed  from  the  shares  of  banks  or 
from  moneyed  capital  in  competition  with  banks. 

The  manner  of  listing  varies  with  the  different  classes  of 
property.  It  appears  that  the  general  rule  is  to  list  real 
estate  where  it  is  located.  On  the  other  hand,  certain  per- 
sonal property,  including  moneys  and  credits,  shares  of 
stock  in  corporations,  and  bills,  notes,  and  bonds,  are  listed 
where  the  owner  lives.  There  are  exceptions  to  this  rule, 
liowever,  and  in  many  cases  the  law  requires  that  property 
be  listed  by  an  agent,  who  may  be  either  a  person  or  a  cor- 
poration. Real  estate  is  listed  every  two  years  and  in  the 
alternate  years  the  assessment  roll  is  corrected  by  adding 
the  value  of  the  improvements  made  during  the  preceding 


310  ECONOMIC  LEGISLATION  IN  IOWA 

year.  Personal  property  is  listed  annually.  The  shares  of 
stock  of  corporations  organized  under  the  Iowa  laws  are 
assessed  to  the  owners  of  such  shares  at  the  place  where  the 
principal  business  of  the  corporation  is  conducted,  unless 
otherwise  provided  by  law.  The  amount  of  capital  invested 
in  real  estate  must  be  deducted  from  the  shares  and  as- 
sessed where  the  real  estate  is  located.  Finally,  it  should 
be  noted  that  corporations  are  liable  for  the  payment  of 
taxes  assessed  to  the  stockholders,  unless  some  other  pro- 
vision is  made  by  law,  and  they  have  the  necessary  author- 
ity to  recover  the  amount  of  such  tax. 

The  revenue  law  provides  special  regulations  for  the  as- 
sessment of  certain  classes  of  property.  Merchants  and 
manufacturers  are  assessed  upon  the  average  amount  of 
stock  held  during  the  year.  Grain,  ice,  and  coal  dealers  are 
assessed  on  the  average  amount  of  capital  used.  Machinery 
used  for  manufacturing  goods  is  listed  as  real  estate  for  the 
purpose  of  taxation.  The  shares  of  stock  of  corporations 
are  exempt  when  the  property  of  the  corporation  is  taxed. 
Water  and  gas  works,  electric  light  plants,  and  street  rail- 
ways are  assessed  where  they  are  located :  the  actual  value 
of  the  capital  stock  over  and  above  that  of  the  listed  prop- 
erty is  assessed  to  the  owners  of  such  capital  stock. 

The  property  enumerated  above  is  all  listed  by  local  as- 
sessors in  the  civil  townships,  towns,  and  cities  of  the  State, 
and  is  subject  to  review  or  equalization  by  township,  county, 
and  State  boards  of  review.  It  does  not,  however,  include 
all  the  property  subject  to  ad  valorem  taxation.  The  State 
Executive  Council  assesses  the  following  items:  railroads 
and  railroad  property,  telegraph  and  telephone  companies, 
express  companies,  freight  line  and  equipment  companies, 
electric  transmission  lines  and  all  similar  State-wide  public 
service  corporations. 

The  Executive  Council  makes  the  assessment  on  the  basis 
of  reports  required  by  law  to  be  submitted  by  the  various 


TAX  LEGISLATION  311 

kinds  of  corporations.  These  reports  vary  in  content,  but 
they  are  in  general  quite  inclusive.  In  the  matter  of  distri- 
bution the  general  rule  is  to  apportion  the  tax  among  the 
counties  on  a  mileage  basis. 

The  Equalization  of  Taxes: — After  the  assessment  is 
completed  and  the  assessment  rolls  are  made  out  there  fol- 
lows the  work  of  review  or  equalization.  The  township 
trustees  act  as  a  local  board  of  review  and  adjust  assess- 
ments between  individuals ;  they  also  hear  appeals ;  and  in- 
dividuals may  appeal  from  their  decision  to  the  district 
court.  The  board  of  supervisors  acts  as  a  county  board  of 
review  and  adjusts  the  assessments  between  townships, 
towns,  and  cities  of  the  county.  Appeals  from  their  de- 
cisions also  lie  to  the  district  court.  The  Executive  Council 
constitutes  the  State  board  of  review  and  adjusts  the  assess- 
ments among  the  several  counties.  It  may  add  to  or  deduct 
from  each  class  of  property  by  counties  so  as  to  make  the 
assessments  equal.  It  will  be  noted  that  the  local  board  of 
review  represents  the  only  means  of  correcting  individual 
assessments  provided  by  the  revenue  laws  of  the  State. 
There  are  from  sixteen  to  thirty  such  local  boards  of  review 
in  the  average  county  of  Iowa.  * '  This  means  that  the  town- 
ship or  other  minor  civil  division  is  the  important  unit  of 
local  government  from  the  standpoint  of  assessment  on  the 
one  hand  and  the  review  or  correction  of  individual  assess- 
ments on  the  other.  The  county  board  of  supervisors  under 
such  a  system  is  absolutely  powerless  to  bring  about  any- 
thing approaching  uniformity  among  the  minor  subdivi- 
sions of  a  county.  In  fact,  no  adequate  authority  is  now 
provided  in  the  revenue  laws  of  Iowa  whereby  the  county  is 
able  to  guarantee  uniformity  of  assessment  within  its 
borders.  "^^^^ 


312  ECONOMIC  LEGISLATION  IN  IOWA 

The  Tax  Rate: — The  General  Assembly  determines  the 
total  amount  to  be  raised  for  State  purposes.  The  Execu- 
tive Council  computes  the  per  cent  on  the  valuation  of  the 
taxable  property  necessary  to  raise  such  an  amount  and  the 
levy  is  made  by  the  county  boards  of  supervisors.  For 
county  purposes  the  county  board  of  supervisors  deter- 
mines the  rates  for  the  several  purposes,  which  must  be 
within  the  maximum  fixed  by  statute.  In  municipal  cor- 
porations the  rate  is  fixed  by  the  city  council,  but  limited  by 
statute  as  to  maximum  rate.  No  attempt  will  be  made  in 
this  connection  to  enumerate  the  different  rates  which  have 
been  levied  for  any  particular  year,  but  it  seems  proper  to 
note  that  the  total  tax  levied  for  all  purposes  —  State, 
county,  and  local  —  for  the  year  1915  amounted  to  more 
than  $50,000,000,  and  that  the  average  rate  was  49.36 
miUs.«^i 

The  Collection  of  Taxes: — Taxes  are  collected  by  the 
county  treasurers.  Semi-annual  payment  is  optional ;  they 
may  be  all  paid  between  the  first  Monday  in  January  and 
March  first ;  or  one-half  may  be  paid  before  March  first  and 
the  other  half  before  September  first.  In  case  no  payment 
is  made  before  April  first,  the  whole  amount  becomes  de- 
linquent. Delinquent  taxes  draw  interest  at  the  rate  of  one 
per  cent  per  month.  Taxes  are  a  lien  on  the  property  on 
which  they  are  levied  and  may  be  collected  by  distress  and 
sale.  County  and  municipal  taxes  are  collected  in  the  same 
manner. 

POLL  TAXES 

The  State  levies  no  poll  tax,  but  there  is  a  county  poll  tax 
of  fifty  cents  on  each  male  resident  over  twenty-one  years 
of  age.  Cities  and  towns,  moreover,  have  power  to  require 
all  able-bodied  male  residents  between  the  ages  of  twenty- 
one  and  forty-five  years  to  perform  or  provide  a  substitute 
to   perform  two   days   labor  upon   the   streets   or   public 


TAX  LEGISLATION  313 

grounds.  This  labor  tax  is  commutable  at  a  maximum  of 
one  dollar  and  fifty  cents  a  day.  Road  supervisors  are  to 
require  two  days  labor  on  the  roads  of  all  able-bodied  men 
between  the  ages  of  twenty-one  and  forty-five  years.  Mem- 
bers of  the  Iowa  National  Guard  and  of  fire  companies  are 
exempt  from  these  taxes. 

BUSINESS  TAXES,  LICENSES,  AND  FEES 

Reference  has  been  made  to  the  inheritance  tax,  corpora- 
tion taxes,  and  the  other  special  forms  of  taxation  in  an- 
other connection.  It  remains  only  to  indicate  something  of 
the  great  variety  of  business  taxes,  licenses,  and  fees  which 
are  levied  in  the  State.  Business  taxes  are  imposed  upon 
retailers  of  cigarettes,  itinerant  physicians,  drug  vendors, 
and  peddlers.  Fees  are  charged  for  the  examination  of 
physicians,  pharmacists,  and  dentists ;  for  the  filing  of  arti- 
cles of  incorporation  and  the  application  to  do  business; 
for  the  registration  of  motor  vehicles ;  and  for  the  examina- 
tion of  banks  and  the  settlement  of  estates.  Licenses  are 
required,  for  which  fees  are  charged,  for  hunting,  for  oper- 
ating milk  testing  machines,  and  for  selling  milk.  The 
foregoing  are  simply  a  few  of  the  typical  taxes,  licenses, 
and  fees.^^2 

RECAPITULATION 

This  brief  review  of  tax  legislation  in  Iowa  shows  that 
the  fundamentals  of  our  revenue  system  are  the  ad  valorem 
principle  of  listing  property;  the  assessment  of  general 
property  by  township,  town,  or  city ;  township,  county,  and 
State  review  or  equalization ;  State  assessment  of  the  prop- 
erty of  various  public  service  corporations;  and  special 
forms  of  taxation  for  certain  classes  of  property.  It  shows, 
moreover,  that  the  first  three  fundamentals  enumerated  — 
the  ad  valorem  principle  of  listing  property,  the  assessment 
of  general  property  by  township,  town  or  city,  and  town- 


314  ECONOMIC  LEGISLATION  IN  IOWA 

ship,  county,  and  State  review  or  equalization,  have  been 
retained  practically  unchanged  throughout  almost  the 
whole  period  of  the  State 's  history,  without  regard  for  the 
ever-changing  economic  and  social  conditions. 

The  general  property  tax,  which  is  the  most  distinctive 
feature  of  our  revenue  system,  was  taken  from  earlier 
jurisdictions  and  made  the  basis  of  our  revenue  system  by 
the  first  Legislative  Assembly  of  the  Territory  of  Iowa. 
The  county  and  township  systems  of  assessment  alternated 
during  the  Territorial  and  early  State  periods,  but  the 
township  system  was  finally  established  permanently  in 
1858.  In  the  matter  of  equalization  many  different  plans 
have  been  tried.  The  present  system  of  township,  county, 
and  State  review  was  established  in  1870.  The  levy  and 
collection  of  taxes  has  always  been  a  county  function.  The 
levy  has  always  been  made,  theoretically  at  least,  upon  the 
actual  value  of  the  property ;  but  there  has  been  much  pro- 
test and  undervaluation,  and  the  Code  of  1897,  which  pro- 
vides for  assessment  of  property  on  the  basis  of  twenty- 
five  per  cent  of  its  value,  still  requires  the  listing  of 
property  at  its  actual  cash  value. 

The  revenue  system  of  the  State  has  not  proved  success- 
ful. It  has,  of  course,  always  been  possible  to  raise  the 
necessary  revenue;  but  in  order  to  be  a  success  a  revenue 
system  must  be  just,  and  a  just  system  must  provide  for 
equality  or  uniformity  and  universality  of  taxation.  In 
regard  to  the  Iowa  revenue  system  the  tax  commission  of 
1912  says  in  part  that  **the  more  one  investigates  the  tax 
question  in  general,  the  less  he  is  inclined  to  criticise  any 
particular  official  or  board,  beginning  with  the  local  as- 
sessor and  ending  with  the  State  Board  of  Review,  and  the 
more  he  is  compelled  to  realize  that  the  primary  fault  is 
with  the  system  itself,  which  by  its  provisions  is  almost 
entirely  ex  officio  in  its  personnel,  and,  therefore,  inefficient 
in  its  actual  operation.  "^^^ 


TAX  LEGISLATION  315 

An  examination  of  the  tax  legislation  of  more  than  three- 
quarters  of  a  century  in  Iowa  seems  to  justify  the  above 
arraignment.  It  appears  that  in  the  matter  of  providing  a 
revenue  system  Iowa  has  not  kept  abreast  of  the  needs  of 
the  times.  The  jurisdictions  from  which  Iowa  borrowed 
the  fundamentals  of  her  revenue  system  have  changed  and 
improved  their  systems.  Neighboring  States  have  met  with 
the  same  difficulties  which  Iowa  encountered  and  have  de- 
veloped satisfactory  systems.  Yet  Iowa  retains  her  old  and 
unsatisfactory  system,  which  has  remained  practically  un- 
changed for  more  than  fifty  years.  That  the  present  system 
is  inadequate  has  been  recognized  by  the  State  legislature 
in  the  creation  of  the  special  tax  commissions  of  1893  and  of 
1911.  The  legislature  has,  however,  consistently  refused  to 
enact  into  law  the  recommendations  of  these  commissions.^^* 


NOTES    AND    EEFERENCES 


317 


NOTES  AND  REFERENCES 

INTBODUCTION 

1  Gamer's  Introduction  to  Political  Science,  p.  325. 

2  G-arner's  Introduction  to  Political  Science,  pp.  289-298. 

3  Hart  in  the  Cyclopedia  of  American  Government,  Vol.  I,  p.  189. 

4  See  Eliot 's  The  Conflict  Between  Individualism  and  Collectivism  in  a 
Democracy,  pp.  93-95. 

5  McClain's  Constitutional  Law  in  the  United  States,  pp.  81-89. 

6  See  Eliot 's  The  Conflict  Between  Individualism  and  Collectivism  in  a 
Democracy,  pp.  95-130. 

CHAPTEE  I 

7  Shambaugh 's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
I,  pp.  6,  7. 

8  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  231-239;  Laws  of  the  Terri- 
tory of  Iowa,  1841-1842,  ch.  79;  Laws  of  Iowa,  1846-1847,  ch.  45,  joint  reso- 
lutions 14,  17;  Laws  of  loiva  (extra  session),  1848,  ch.  42;  Laws  of  Iowa, 
1848-1849,  joint  resolutions  11,  30,  memorials  2,  6,  eh.  7;  Laws  of  Iowa  (spe- 
cial), 1860,  ch.  10;  Laws  of  Iowa,  1866,  ch.  41;  Laws  of  Iowa,  1868,  joint  reso- 
lution 13;  Laws  of  Iowa,  1890,  joint  resolution  14. 

For  other  legislation  pertaining  to  navigation  see  Laws  of  Iowa,  1896,  ch. 
120;  Laws  of  Iowa,  1902,  ch.  210;  Laws  of  Iowa,  1909,  ch.  258. 

9  Laws  of  Iowa,  1846-1847,  joint  resolutions  14,  17;  Laws  of  Iowa,  1848- 
1849,  joint  resolutions  11,  14,  30,  memorials  2,  6;  Laws  of  Iowa,  1866,  joint 
resolution  14;  Laws  of  Iowa,  1868,  joint  resolutions  8,  9,  13;  Laws  of  Iowa, 
1880,  joint  resolution  14;  Laivs  of  Iowa,  1882,  joint  resolution  4;  Laws  of 
Iowa,  1894,  memorial,  p.  207. 

10  Laws  of  Iowa,  1888,  ch.  107;  Laws  of  Iowa,  1900,  ch.  84;  Laws  of  Iowa, 
1909,  ch.  149;  Laius  of  Iowa,  1911,  ch.  112. 

11  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  67,  447.  For  other  regula- 
tory acts  relating  to  boats  and  vessels  see  Laws  of  the  Territory  of  Wisconsin, 
1836-1838,  pp.  232,  485 ;  Laws  of  the  Territory  of  Iowa,  1845,  ch.  23 ;  Laws  of 
Iowa,  1846-1847,  ch.  97. 

12  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  339,  340. 

319 


320  ECONOMIC  LEGISLATION  IN  IOWA 

13  Xau's  of  the   Territory  of  Iowa,   1839-1840,  joint   resolution   4,   p.    148; 
United  States  Statutes  at  Large,  Vol.  IX,  p.  77. 

14  Concerning  this  first  resolution,  see  Laws  of  Iowa,  1846-1847,  joint  reso- 
lution 2,  eh.  113;  Report  of  the  Register  of  the  State  Land  Office,  1865,  p.  31. 
For  other  legislation  relative  to  the  Des  Moines  improvement  see  Laws  of  the 
Territory  of  Iowa,  1838-1839,  p.  339;   Laws  of  the  Territory  of  Iowa,  1839- 
1840,  joint  resolution  4;  Laws  of  Iowa  (extra  session),  1848,  ch.  41;  Laws  of 
Iowa,  1848-1849,  chs.  7,  85,  memorial  1 ;  Laws  of  Iowa,  1850-1851,  chs.  58,  63, 
joint  resolution  1;  Laws  of  Iowa,  1852-1853,  chs.  32,  103,  joint  resolutions  8,  9; 
Laws  of  Iowa,  1854-1855,  ch.  117;  Laws  of  Iowa,  1856-1857,  ch.  222;  Laws  of 
Iowa,  1858,  chs.  99,  148,  joint  resolution  4;  Laivs  of  Iowa  (special),  1860,  chs 
16,  35,  63,  91;  Laws  of  Iowa,  1862,  joint  resolution  19;  Laws  of  Iowa,  1864 
eh.  108;  Laws  of  Iowa,  1866,  chs.  22,  41,  121,  concurrent  resolution  3,  p.  182 
Laws  of  Iowa,  1868,  ch.  36;  Laws  of  Iowa,  1870,  eh.  104,  joint  resolution  20 
Laws  of  Iowa   (local),  1872,  ch.  7;   Laws  of  Iowa,  1874,  joint  resolution  3 
Laws  of  Iowa,  1880,  joint  resolution  3;  Laws  of  Iowa,  1882,  joint  resolution  5 
Laws  of  Iowa,  1884,  joint  resolution  14. 

The  Revision  of  1860  contains  the  collected  laws  relative  to  the  Des  Moines 
Eiver  Improvement  prior  to  1861,  pp.  889-916.  See  also  Iowa  Land  Office  Re- 
ports, 1850-1877. 

15  A  copy  of  this  contract  is  printed  in  the  Appendix  to  the  House  Journal, 
1855,  pp.  39-47. 

16  Laws  of  Iowa,  1858,  joint  resolution  4;  Report  of  the  Register  of  the  State 
Land  Office,  1865,  pp.  42,  43;  Laws  of  Iowa,  1858,  ch.  99;  Laws  of  Iowa  (spe- 
cial), 1860,  eh.  16. 

17  Laws  of  Iowa,  1866,  concurrent  resolution  3,  pp.  182,  183 ;  ch.  41. 

18  For  laws  and  resolutions  relative  to  a  canal  around  the  lower  rapids  in  the 
Mississippi  Eiver  see  Laws  of  Iowa,  1848-1849,  joint  resolution  17;  Laws  of 
Iowa,  1850—1851,  joint  resolution  8;  Laws  of  Iowa,  1855,  joint  resolution  3; 
Laws  of  Iowa,  1868,  ch.  7;  Laws  of  Iowa,  1870,  joint  resolution  16. 

For  resolutions  and  memorials  favoring  waterways  from  the  Mississippi 
Eiver  to  the  Atlantic  Ocean  see  Laws  of  loica,  1864,  ch.  58,  joint  resolution  4; 
Laws  of  Iowa,  1868,  joint  resolutions  10,  19;  Laws  of  Iowa,  1870,  joint  resolu- 
tions 21,  22;  Laws  of  loica,  1872,  joint  resolutions  4,  12;  Laws  of  Iowa,  1874, 
joint  resolutions  1,  12,  16;  Latvs  of  Iowa,  1876,  joint  resolutions  1,  2,  6;  Laws 
of  Iowa,  1878,  joint  resolution  7;  Laws  of  Iowa,  1882,  joint  resolutions  2,  6; 
Laws  of  Iowa,  1884,  joint  resolution  3;  Laws  of  Iowa,  1890,  joint  resolution  3, 
p.  182;  Laws  of  Iowa,  1894,  joint  resolution  3,  p.  203;  Lairs  of  Iowa,  1896, 
joint  resolution  3. 

10  For  a  good  account  of  ferry  legislation  in  the  Territory  of  Iowa  see  Van 
der  Zee's  The  Roads  and  Highways  of  Territorial  Iowa  in  The  Iowa  Journal  of 
History  and  Politics,  Vol.  Ill,  pp.  181-191.    Laws  of  the  Territory  of  Wiscon- 


NOTES  AND  REFERENCES  321 

sin,  1836,  ch.  38;  Laws  of  the  Territory  of  Wisconsin,  1838,  chs.  41,  43,  64,  82, 
91;  Laws  of  the  Territory  of  Wisconsin  (special  session),  1838,  ehs.  8,  22,  25. 
For  legislation  relative  to  ferries  during  the  Territorial  period  see  Laws  of 
the  Territory  of  Iowa,  1838-1839,  pp.  205-216;  Laws  of  the  Territory  of  Iowa, 
1839-1840,  chs.  21,  31,  32,  58,  79,  92;  Laws  of  the  Territory  of  Iowa  (extra 
session),  1840,  ch.  8;  Laws  of  the  Territory  of  Iowa,  1840-1841,  chs.  7,  15,  34, 
35,  39,  40,  55,  63,  99;  Laws  of  the  Territory  of  Iowa,  1841-1842,  chs.  9,  22,  26, 
27,  43,  58,  66,  80,  82,  106;  Laws  of  the  Territory  of  Iowa  (local),  1842-1843, 
chs.  24,  36,  44,  50,  51,  66;  Bevised  Statutes  of  Iowa,  1842-1843,  chs.  72,  73; 
Laws  of  the  Territory  of  Iowa,  1843-1844,  chs.  46,  48,  52,  61,  75,  76,  113; 
Laws  of  the  Territory  of  Iowa,  1845,  ch.  66;  Laws  of  the  Territory  of  Iowa, 
1845-1846,  ch.  52. 

20  Laws  of  the  Territory  of  Iowa,  1838,  p.  208. 

21  Laws  of  Iowa,  1846-1847,  ch.  108. 

Special  laws  authorizing  the  establishment  of  ferries  during  the  State  period 
provided  for  seven  ferries  across  the  Mississippi,  three  across  the  Missouri,  two 
across  the  Cedar,  and  four  across  the  Des  Moines. —  Laws  of  Iowa,  1846-1847, 
chs.  12,  67,  108;  Laws  of  loiva  (extra  session),  1848,  chs.  20,  39,  64,  72,  73,  74; 
Laws  of  Iowa,  1848-1849,  chs.  1,  14,  23,  28,  41,  50,  60,  68,  72,  76;  Laws  of 
Iowa,  1850-1851,  ch.  12;  Code  of  1851,  Title  XI,  ch.  45;  Laws  of  Iowa,  1856- 
1857,  oh.  212. 

22  Laws  of  Iowa,  1858,  ch.  157,  sec.  69. 

'2S  Laws  of  the  Territory  of  Iowa,  1840-1841,  ch.  94;  Laws  of  the  Territory 
of  Iowa,  1843-1844,  ch.  123. 

2i  Laws  of  Iowa  (extra  session),  1848,  ch.  25;  Laws  of  Iowa,  1848-1849,  ch. 
126;  Laws  of  Iowa,  1850-1851,  ch.  39;  Code  of  1851,  sees.  569,  726-734. 

25  Laws  of  Iowa,  1854-1855,  chs.  99,  165,  168;  Laws  of  Iowa  (extra  session), 
1856,  eh.  41;  Laws  of  Iowa,  1856-1857,  chs.  99,  154;  Laws  of  Iowa,  1858,  ch. 
27. 

2^  Laws  of  Iowa,  1858,  ch.  93;  Laws  of  Iowa,  1855,  ch.  168;  Laws  of  Iowa, 
1856-1857,  ch.  212;  Laws  of  Iowa,  1862,  ch.  112;  Laws  of  Iowa,  1864,  ch.  130; 
Laws  of  Iowa,  1866,  ch.  87. 

2T  Laws  of  Iowa,  1868,  ch.  145;  Laws  of  Iowa,  1870,  chs.  38,  84;  Laws  of 
Iowa  (general),  1872,  chs.  1,  28. 

2^  Laws  of  the  Territory  of  Iowa  (extra  session),  1845,  joint  resolution  17; 
Laws  of  the  Territory  of  Iowa,  1845-1846,  joint  resolutions  1,  3,  5;  Laws  of 
Iowa,  1848-1849,  joint  resolution  2;  Laws  of  Iowa,  1850-1851,  joint  resolu- 
tions 9,  22,  and  memorial  3;  Laws  of  Iowa,  1855,  joint  resolution  20;  Laws  of 
Iowa,  1872,  joint  resolutions  1,  20. 

29  For  a  detailed  study  of  road  legislation  in  Iowa  see  Brindley  's  History  of 
Road  Legislation  in  Iowa;  and  Van  der  Zee's  The  Roads  and  Highways  of 

21 


322  ECONOMIC  LEGISLATION  IN  IOWA 

Territorial  Iowa  in  The  Iowa  Journal  of  History  and  Politics,  Vol.  Ill,  pp. 
175-225. 

so  Laws  of  the  Territory  of  Wisconsin,  1836,  eh.  20. 

31  Laws  of  the  Territory  of  Wisconsin,  1837-1838,  chs.  20,  24,  25,  57. 

32  See  Brindley  's  History  of  Boad  Legislation  in  Iowa,  Chapter  II. 

33  Shambaugh 's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
I,  p.  82. 

34  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  428. 

35  For  typical  acts  see  Laws  of  the  Territory  of  loxva,  1838-1839,  pp.  427, 
430,  431.  The  whole  list  may  be  obtained  by  an  examination  of  the  bound  vol- 
umes of  the  session  laws  for  the  period  under  consideration. 

36  For  legislation  on  the  obstruction  of  roads  see  Laws  of  the  Territory  of 
Iowa,  1838-1839,  p.  165;  Laws  of  the  Territory  of  Iowa,  1843-1844,  ch.  18; 
Laws  of  the  Territory  of  Iowa,  1845,  ch.  27;  Laws  of  the  Territory  of  Iowa, 
1845-1846,  ch.  38. 

For  legislation  concerning  the  duties  of  supervisors  see  Laws  of  the  Terri- 
tory of  Iowa,  1839-1840,  ch.  80;  Laws  of  the  Territory  of  Iowa,  1841-1842, 
ch.  32. 

For  legislation  concerning  the  opening  and  the  regulating  of  roads  see  Laws 
of  the  Territory  of  Iowa,  1839-1840,  ch.  91;  Laws  of  the  Territory  of  Iowa, 
1841-1842,  ch.  35;  Revised  Statutes  of  Iowa,  1842-1843,  ch.  125;  Laws  of  the 
Territory  of  Iowa  (extra  session),  1844,  ch.  11;  Laws  of  the  Territory  of  Iowa, 
1845-1846,  chs.  35,  40. 

For  legislation  concerning  the  organization  of  townships  see  Laws  of  the  Ter- 
ritory of  Iowa,  1839-1840,  ch.  37,  sees.  21-23;  Revised  Statutes  of  Iowa,  1842- 
1843,  ch.  152,  sees.  7,  11,  12,  20-22;  Laivs  of  the  Territory  of  Iowa  (extra  ses- 
sion), 1845,  ch.  11,  sees.  6-10. 

For  legislation  on  the  subject  of  taxation  for  road  purposes  see  Laics  of  the 
Territory  of  Iowa,  1841-1842,  ch.  83;  Revised  Statutes  of  Iowa,  1842-1843,  eh. 
151;  Laws  of  the  Territory  of  Iowa,  1843-1844,  ch.  19;  Latvs  of  the  Territory 
of  Iowa  (extra  session),  1845,  ch.  26.  See  also  the  Register  and  Leader  for 
August  17,  1915. 

37  For  an  account  of  the  aid  given  by  the  Federal  government  for  military 
and  Territorial  roads  in  Iowa,  see  Van  der  Zee's  The  Roads  and  Highways  of 
Territorial  loiua  in  The  Iowa  Journal  of  History  and  Politics,  Vol.  Ill,  pp. 
175-225. 

Laws  of  the  Territory  of  Iowa,  1839-1840,  joint  resolution  8;  Laws  of  the 
Territory  of  Iowa,  1845-1846,  joint  resolutions  1,  8;  Laws  of  Iowa,  1846- 
1847,  joint  resolutions  12,  19;  Laws  of  Iowa,  1848-1849;  joint  resolution  40; 
Laws  of  Iowa,  1850-1851,  joint  resolutions  3,  5,  memorials  2,  6. 

38  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  254-263. 


NOTES  AND  REFERENCES  323 

39  For  legislation  providing  for  graded  or  plank  roads  see  Laws  of  Iowa, 
1848-1849,  chs.  33,  96,  131;  Laws  of  Iowa,  1850-1851,  chs.  13,  24,  35,  41,  48, 
59,  64,  65,  78;  Laws  of  Iowa,  1852-1853,  ch.  22;  Laivs  of  Iowa,  1858,  ch.  78. 

40  Laws  of  Iowa,  1862,  ch.  61. 

41  For  typical  acts  establishing  State  roads  see  Laws  of  Iowa,  1852-1853, 
ch.  106;  Laws  of  Iowa,  1854-1855,  eh.  160. 

■i^  Laws  of  Iowa,  1846-1847,  ch.  85;  Laws  of  Iowa  (extra  session),  1848,  eh. 
44;  Laws  of  Iowa,  1848-1849,  ch.  102. 

43  Code  of  1851,  ch.  38.  For  the  date  of  taking  effect  see  Code  of  1851,  p. 
472.     See  also  Brindley's  History  of  Boad  Legislation  in  Iowa,  Chapter  IV. 

44  Laws  of  Iowa,  1852-1853,  ch.  48. 

45  See  Brindley  's  History  of  Boad  Legislation  in  Iowa,  Chapter  V,  pp.  99- 
125. 

46  Constitution  of  Iowa,  1857,  Art.  Ill,  sec.  30. 

4T  Bevision  of  1860,  Title  III,  ch.  22,  art.  11. 

For  a  complete  list  of  the  laws  relating  to  roads  enacted  during  this  period, 
1860-1870,  see  Bevision  of  1860,  pp.  53-57,  133-146;  Laws  of  Iowa,  1862,  chs. 
96,  163;  Laws  of  Iowa,  1864,  chs.  76,  83;  Laws  of  Iowa,  1866,  chs.  87,  127; 
Laws  of  Iowa,  1868,  chs.  35,  47,  76,  100,  110,  148;  Laws  of  Iowa,  1870,  chs. 
147,  148.  See  also  25  Iowa  540  in  which  ch.  127  of  the  Laivs  of  loiua,  1866, 
was  held  to  be  unconstitutional. 

48  The  several  acts  passed  during  this  period  indicate  the  general  tendency 
toward  decentralization.  See  Laws  of  loiva,  1854-1855,  chs.  52,  147;  Laws  of 
Iowa,  1856-1857,  ch.  130 ;  Laws  of  Iowa,  1858,  chs.  149,  154. 

49  Brindley 's  History  of  Boad  Legislation  in  Iowa,  p.  176 ;  Laws  of  Iowa, 
1870,  ch.  148. 

For  a  more  complete  discussion  see  Brindley 's  History  of  Boad  Legislation  in 
Iowa,  pp.  155-183. 

50  For  road  legislation  enacted  between  1870  and  1882  see  Laws  of  Iowa, 
1870,  chs.  20,  38,  84,  86,  148,  179;  Laws  of  Iowa  [public  laws],  1872,  chs.  1, 
13,  28,  94;  Code  of  187 S,  pp.  161-178;  Laws  of  Iowa,  1874,  chs.  5,  17,  19,  34, 
47,  51;  Laws  of  loiva,  1876,  chs.  21,  29,  80,  167;  Laws  of  Iowa,  1878,  chs.  40, 
52,  163;  Laws  of  Iowa,  1880,  chs.  32,  36,  45,  46,  52,  88,  178;  Laws  of  Iowa, 
1882,  chs.  41,  51,  63,  80,  109,  132,  158. 

51  For  a  more  complete  discussion  see  Brindley 's  History  of  Boad  Legislation 
in  Iowa,  Chapter  VIII. 

52  Laws  of  Iowa,  1884,  ch.  200. 

53  For  the  road  legislation  enacted  between  1884  and  1902  see  Laws  of  Iowa, 
1884,  chs.  13,  147,  197,  200;  Laws  of  Iowa,  1886,  ehs.  13,  55,  85,  87;  Laws  of 


324  ECONOMIC  LEGISLATION  IN  IOWA 

loiva,  1888,  chs.  16,  92;  Laws  of  Iowa,  1890,  chs.  2,  21;  Laws  of  Iowa,  1892, 
chs.  22,  40,  45,  68,  74;  Laws  of  Iowa,  1894,  chs.  18,  20,  21,  88;  Laws  of  Iowa, 
1896,  chs.  42,  43,  44,  45,  47,  48,  78;  Code  of  1897,  see  index  under  "Eoads", 
pp.  2321,  2322;  Laws  of  Iowa,  1898,  chs.  27,  38,  39,  159;  Laws  of  Iowa,  1900, 
eh,  139;  Laws  of  Iowa,  1902,  chs.  42,  53,  64,  65,  78,  81. 

54  Laws  of  Iowa,  1894,  eh.  22, 

55  Brindley  's  History  of  Eoad  Legislation  in  Iowa,  p.  206, 

^^  Laws  of  Iowa,  1904,  ch.  105;  Brindley 's  History  of  Eoad  Legislation  in 
Iowa,  p,  219, 

57  Laws  of  Iowa,  1909,  eh.  95. 

58  Laws  of  Iowa,  1911,  eh.  72. 

59  Laws  of  Iowa,  1913,  ch.  122,  sec.  3. 

60  Laws  of  Iowa,  1913,  chs.  122,  123,  133. 

61  For  the  road  laws  enacted  during  the  period  between  1904  and  1915  in- 
clusive see  Laws  of  Iowa,  1904,  chs.  50,  52,  53,  68,  105;  Laws  of  Iowa,  1906, 
ehs.  56,  57,  58,  59,  62,  63;  Laws  of  Iowa,  1907,  ehs.  36,  64,  65,  66,  67,  68,  69, 
97,  concurrent  resolutions  3,  4,  pp.  290,  291;  Laws  of  Iowa,  1909,  chs.  93,  94, 
95,  96,  97,  98,  99,  100,  101,  102,  103;  Laws  of  Iowa,  1911,  chs.  24,  69,  70,  71, 
72;  Laws  of  Iowa,  1913,  chs.  122,  123,  124,  125,  126,  127,  128,  129,  130,  131, 
132,  133,  134,  157,  319;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915, 
Title  VII,  ch.  1,  sec.  1303,  paragraphs  4,  5,  p.  106,  Title  VIII,  chs.  1,  1-A,  2, 
2-B,  Title  X,  chs.  2-B,  4. 

62  Laws  of  Iowa,  1917,  ehs.  3,  6,  16,  30,  161,  172,  205,  212,  249,  316,  335,  338, 
376,  398,  410,  417. 

63  Laws  of  Iowa,  1917,  eh,  6, 

64  Laws  of  Iowa,  1917,  eh.  316. 

65  Laws  of  Iowa,  1917,  ch.  249.  See  also  Iowa  State  Highway  Commission 
Service  Bulletin,  April-May,  1917,  pp.  5-8.     (Vol.  V,  Nos.  4,  5.) 

66  See  First  Annual  Report  of  the  Iowa  State  Highway  Commission,  1915, 
pp.  66,  67. 

CHAPTEE  II 

67  Constitution  of  Iowa,  1846,  Art.  VIII,  See.  2. 

68  Laws  of  Iowa,  1846-1847,  ch.  81. 

69  Lau'S  of  Iowa  (extra  session),  1848,  ch.  51. 

70  For  memorials  and  joint  resolutions  asking  Congress  for  land  grants  to 
railroads  see  Laws  of  Iowa  (extra  session),  1848,  joint  resolution  5,  memorial 

3;  Laws  of  Iowa,  1848-1849,  joint  resolutions  5,  15;   Laws  of  Iowa,  1850- 


NOTES  AND  REFERENCES  325 

1851,  memorials  4,  5;  Laws  of  Iowa,  1852-1853,  joint  resolutions  2,  3,  memo- 
rials 1,  3;  Laws  of  Iowa  (extra  session),  1856,  joint  resolutions  3,  6,  7,  8; 
Laws  of  Iowa,  1856-1857,  joint  resolutions  2,  19,  27;  Laws  of  Iowa,  1860, 
joint  resolutions  1,  2;  Laws  of  Iowa,  1864,  joint  resolution  12;  Laws  of  Iowa, 
1866,  joint  resolutions  4,  6,  7,  8,  11. 

71  Laws  of  Iowa,  1848-1849,  eh,  75. 

72  For  acts  granting  rights  of  way  see  Laws  of  Iowa  (extra  session),  1848, 
oh.  51;  Laws  of  Iowa,  1850-1851,  chs.  4,  34,  46,  56,  57,  66,  85. 

For  the  general  law  providing  for  the  mode  of  obtaining  a  right  of  way  see 
Laws  of  Iowa,  1852-1853,  ch.  31. 

73  See  Code  of  1851,  ch.  46,  p.  120. 

"JiLaws  of  Iowa,  1852-1853,  ch.  31;  Larrabee's  The  Railroad  Question,  p, 
319;  Laws  of  Iowa,  1848-1849,  resolution  5;  Laws  of  Iowa,  1850-1851,  ch.  2. 

75  Laws  of  Iowa,  1856-1857,  chs.  153,  239,  241,  243,  252;  Eighth  Census  of 
the  United  States,  1860  (Population),  p.  133. 

76  Eevision  of  1860,  ch.  55,  art.  8,  p.  223. 
'IT  Laws  of  Iowa,  1868,  ch.  48. 

•IS  Laws  of  Iowa,  1870,  ch.  102. 

79  For  acts  relative  to  voting  taxes  to  aid  in  railroad  construction  gee  Laws 
of  Iowa,  1854-1855,  ch.  128;  Laws  of  Iowa,  1856  (extra  session),  ch.  29;  Laws 
of  Iowa,  1856-1857,  chs.  153,  178,  186,  205,  239,  241,  243,  252;  "Lows  of  Iowa, 
1858,  chs.  66,  132;  Eevision  of  1860,  ch.  55,  art.  8;  Laws  of  Iowa,  1858,  ch.  48; 
Laws  of  Iowa,  1870,  ch.  102;  Laws  of  Iowa  (general),  1872,  chs.  2,  10,  50,  81; 
Laws  of  Iowa  (local),  1874,  chs.  37,  48,  54;  Laws  of  Iowa,  1876,  ch.  123; 
Laws  of  Iowa,  1878,  chs.  49,  87,  157,  173;  Laws  of  Iowa,  1880,  chs.  96,  121, 
144,  192;  Laws  of  Iowa,  1882,  ch.  102;  Laws  of  Iowa,  1884,  ch.  159;  Laws  of 
Iowa,  1890,  ch.  19;  Laws  of  Iowa,  1892,  ch.  18;  Laws  of  Iowa,  1894,  ch.  27;' 
Laws  of  Iowa,  1902,  chs.  85,  86;  Laws  of  Iowa,  1911,  chs.  91,  92;  Laws  of 
Iowa,  1913,  chs.  168,  169. 

80  United  States  Statutes  at  Large,  Vol.  11,  p.  9. 

81  Laws  of  Iowa  (extra  session),  1856,  ch.  1. 
^z  Laws  of  Iowa  (special  acts),  1860,  ch.  37. 

83  Laws  of  Iowa,  1856-1857,  ch.  182. 

84  Laws  of  Iowa,  1858,  ch.  99. 

85  Larrabee  's  The  Eailroad  Question,  p.  329. 

86  In  the  Eeport  of  the  Transactions  of  the  Land  Department  of  Iowa,  1901, 
table  31,  p.  55,  it  appears  that  the  total  amount  of  land  concessions  by  acts  of 
Congress  to  the  State  of  Iowa  for  railroad  purposes  from  the  year  1856  to 
June  30,   1901,  was  4,802,878.5  acres.     In  addition  to  this  amount  the  Des 


326  ECONOMIC  LEGISLATION  IN  IOWA 

Moines  Valley  Eailroad  Company  also  received  cash  indemnity  for  44,157.66 
acres. 

The  Beport  of  the  Bailroad  Commissioners  of  Iowa,  1893,  gives  the  total 
acreage  granted  to  railroa,ds  in  Iowa  as  3,724,801.52  acres.  The  selling  price  of 
the  land  is  given  in  this  same  report  on  pp.  12,  13. 

Land  concessions  by  Congress  to  the  Sta.te  of  Iowa  for  railroad  purposes 
from  the  year  1850  to  June  30,  1911,  are  as  follows: 

RAELROAD   COMPANY  ACRES 

Burlington  and  Missouri  River 389,990.11 

Chicago,  Eock  Island  &  Pacific 483,214.36 

(  161,532.81 
Cedar  Rapids  and  Missouri  River J  922,813.67 

(  244,022.96 

Dubuque  &  Sioux  City 556,406.74 

Iowa  Falls  &  Sioux  City 683,057.34 

Des  Moines  Valley ■.  .840,091.36 

Chicago,  Milwaukee  &  St.  Paul 326,216.10 

McGregor  &  Missouri  River .  ^ 

Sioux  City  &  St.  Paul | 322,412.81 

Total 4,929,758.26 

This  sum  includes  222,977.56  acres  situated  in  the  old  Des  Moines  River  grant 
of  August  8,  1846,  which  should  be  deducted  (Wolcott  v.  Des  Moines  Co.,  5 
Wall.  631).  This  leaves  a  total  of  4,706,780.70  acres.— Reports  of  the  Depart- 
ment of  the  Interior,  1911,  Administrative  Reports,  Vol.  I,  p.  133. 

87Larrabee's  The  Bailroad  Question,  p.  329. 

88  A  complete  collection  of  the  acts  of  Congress  relative  to  railroad  land 
grants  in  Iowa  may  be  found  in  the  Beport  of  the  Transactions  of  the  Land 
Department  of  loiva  for  1901  or  for  1908.  A  collection  of  the  acts  passed  by 
the  Greneral  Assemblies  of  Iowa  relative  to  land  grants  to  railroads  in  Iowa,  the 
disposition  of  the  same  and  other  related  matters,  may  be  found  in  these  same 
reports  for  1901  or  1908. 

For  the  acts  of  the  General  Assemblies  on  the  subject  see  Laws  of  Iowa 
(extra  session),  1856,  ch.  1;  Laws  of  Iowa,  1856-1857,  ehs.  129,  182;  Laws  of 
Iowa  (special  laws),  1860,  chs.  17,  25,  36,  37;  Laws  of  Iowa,  1862,  ch.  153; 
Laws  of  Iowa,  1866,  chs.  121,  134,  144;  Laws  of  Iowa,  1868,  chs.  10,  13,  16,  26, 
42,  58,  124;  Laws  of  Iowa,  1870,  ch.  73;  Laws  of  Iowa  (general),  1872,  ch.  83; 
Code  of  1873,  ch.  5,  sec.  93  of  Title  II;  Laws  of  loiva  (public),  1874,  ch.  34; 
Laws  of  Iowa,  1876,  ch.  96;  Laws  of  Iowa,  1878,  chs.  21,  30;  Laws  of  Iowa, 
1880,  chs.  167,  186;  Laws  of  Iowa,  1882,  chs.  107,  123;  Laws  of  Iowa,  1884, 
chs.  69,  71. 

89  See  Beports  of  the  State  Land  Office  and  the  Beports  of  the  Bailroad  Com- 
missioners of  Iowa. 


NOTES  AND  REFERENCES  327 

^0  Laws  of  Iowa  (extra  session),  1856,  eh.  1,  p.  5. 

81  Eighth  Annual  Report  of  the  Board  of  Bailroad  Commissioners  of  Iowa, 
p.  33. 

02  Laics  of  Iowa,  1854-1855,  ch.  159. 

93  LawJS  of  Iowa,  1856-1857,  chs.  174,  216,  225;  Laws  of  Iowa,  1858,  chs.  85, 
89. 

^^Code  of  1851,  sec.  689;  Laivs  of  Iowa,  1858,  eh.  85. 

^5  Laws  of  Iowa,  1855,  memorial  8;  Laws  of  Iowa,  1856-1857,  joint  resolu- 
tions 11,  12,  15;  Laws  of  Iowa,  1858,  ch.  115. 

86  Laws  of  Iowa,  1858,  ch.  80;  Laws  of  Iowa,  1860  (special),  ch.  103.  For 
other  miscellaneous,  amendatory,  and  special  acts  see  Laws  of  Iowa  (extra  ses- 
sion), 1856,  ch.  25;  Laws  of  Iowa,  1856-1857,  chs.  22,  32,  183;  Laws  of  Iowa, 
1858,  ch.  66. 

^■7  Laws  of  Iowa,  1862,  chs.  153,  158,  159,  169;  Laws  of  Iowa,  1864,  chs.  20, 
44,  86,  joint  resolution  11;  Laws  of  Iowa,  1866,  chs.  102,  113;  Laws  of  Iowa, 
1868,  chs.  13,  79,  117,  172,  joint  resolution  14;  Laws  of  Iowa,  1870,  chs.  62,  91, 
121,  125,  139,  165,  joint  resolution  9;  Laws  of  Iowa  (general),  1872,  chs.  6,  33, 
39,  65,  111,  119,  joint  resolutions  3,  8;  Laws  of  loiva  (adjourned  session), 
1873,  joint  resolutions  2,  12;  Code  of  1873,  sees.  1297,  1302,  1305,  1323. 

^^  Laws  of  Iowa   (public),  1874,  ch.  68. 

99  Laws  of  Iowa,  1878,  ch.  77.  For  a  very  interesting  account  of  the  repeal 
of  this  law  see  Aldrich's  The  Repeal  of  the  Granger  Law  in  Iowa  in  The  Iowa 
Journal  of  History  and  Politics,  Vol.  Ill,  pp.  256-270. 

100  See  Laws  of  Iowa  (general),  1874,  chs.  5,  6,  18,  20,  34,  47,  65;  Laws  of 
Iowa  (local),  1874,  chs.  34,  38,  joint  resolutions  4,  9,  13,  19;  concurrent  reso- 
lution 2;  Laws  of  Iowa,  1876,  chs.  68,  118,  133,  148,  153,  154;  Laws  of  loica, 
1878,  chs.  114,  126,  152,  156;  Laws  of  Iowa,  1880,  chs.  96,  128,  joint  resolu- 
tion 2. 

101  Laws  of  Iowa,  1878,  ch.  77. 

102  Laws  of  lorva,  1878,  eh.  77. 

103  For  the  law  making  the  change  from  a  weak  commission  to  a  strong  com- 
mission see  Laws  of  Iowa,  1888,  eh.  28. 

104  Laws  of  Iowa,  1884,  ch.  133. 

105  Shambaugh's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
VI,  pp.  73-76. 

106  Laios  of  Iowa,  1888,  ch.  28. 

107  For  legislation  relative  to  the  board  of  railroad  commissioners  see  Laics 
of  Iowa,  1884,  chs.  24,  133,  joint  resolution  4;  Laws  of  Iowa,  1888,  chs.  28,  29, 


328  ECONOMIC  LEGISLATION  IN  IOWA 

31;  Laws  of  Iowa,  1890,  ch.  17;  Latvs  of  Iowa,  1892,  chs.  25,  27;  Laws  of 
Iowa,  1896,  ch.  34;  Laws  of  Iowa,  1898,  eh.  51;  Laws  of  Iowa,  1907,  chs.  106, 
107,  108,  110,  111,  115,  205;  Laws  of  Iowa,  1909,  chs.  127,  129;  Laws  of  Iowa, 
1911,  chs.  95,  194,  195;  Laws  of  Iowa,  1913,  chs.  173,  174,  175,  178,  334;  Code 
of  1897,  sees.  2034-2157;  Laws  of  Iowa,  1917,  chs.  82,  93,  245,  260,  298,  315. 

108  For  the  acts  relative  to  the  Commerce  Counsel  see  Laws  of  Iowa,  1911, 
ch.  94;  Laws  of  Iowa,  1913,  chs.  176,  177. 

109  For  railroad  legislation  from  1888  to  1917,  inclusive,  other  than  that 
relative  to  the  board  of  railroad  commissioners,  see  Laws  of  Iowa,  1888,  chs.  16, 
30,  31,  32,  57,  96,  186;  Laws  of  Iowa,  1890,  chs.  18,  19,  20,  21,  124;  Laws  of 
Iowa,  1892,  chs.  18,  22,  23,  25,  26,  27;  Laws  of  Iowa,  1894,  chs.  7,  23,  24,  25, 
26,  27,  28,  joint  resolution  7;  Laws  of  Iowa,  1896,  chs.  34,  35,  36;  Laws  of 
Iowa,  1898,  chs.  49,  50,  51 ;  Laws  of  Iowa,  1900,  chs.  44,  70,  71,  180 ;  Laws  of 
Iowa,  1902,  chs.  58,  60,  61,  62,  79,  81,  83,  84,  85,  86,  87,  joint  resolution  14; 
Laws  of  lotva,  1904,  chs.  46,  47,  68,  74,  75,  76 ;  Laws  of  Iowa,  1906,  chs.  9,  87, 
88,  89,  90,  215;  Laivs  of  Iowa,  1907,  chs.  40,  95,  96,  97,  98,  99,  100,  101,  102, 
103,  104,  105,  106,  107,  108,  109,  110,  111,  112,  113,  114,  115,  163,  205;  Laws 
of  Iowa,  1909,  ehs.  51,  59,  118,  124,  125,  126,  127,  128,  129,  130,  141,  152,  219; 
Laws  of  Iowa,  1911,  chs.  76,  87,  90,  91,  92,  93,  94,  95,  96,  155,  163,  194,  195; 
Laws  of  Iowa,  1913,  chs.  162,  163,  165,  166,  167,  168,  169,  170,  171,  172,  173, 
174,  175,  176,  177,  178,  179,  180,  334;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  sees.  2017,  2033-g,  2033-h,  2033-i,  2033-j,  2033-k,  2033-1,  2033-m, 
2074-f,  2110-bl,  2110-b2,  2121,  2125;  Laws  of  Iowa,  1917,  chs.  211,  284,  327, 
353,  390,  399,  403,  407. 

110  Laws  of  Iowa,  1907,  oh.  102. 

111  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  2017,  2033-g, 
2033-h,  2033-i,  2033-j,  2033-k,  2033-1,  2033-m,  2074-f,  2110-bl,  2110-b2,  2121, 
2125;  Laws  of  Iowa,  1917,  chs.  82,  93,  211,  245,  260,  284,  298,  315,  327,  353, 
390,  399,  403. 

112  Code  of  1851,  sees.  462,  463. 

113  Laws  of  Iowa,  1858,  ch.  152. 
11*  Laws  of  Iowa,  1862,  ch.  173. 

115  Laws  of  Iowa,  1868,  ch.  196. 

116  Laws  of  Iowa,  1870,  ch.  106. 

117  Lows  of  Iowa  (general),  1872,  ch.  26. 

118  Brindley's  History  of  Taxation  in  Iowa,  Vol.  II,  p.  83. 

119  For  amendatory  and  acts  of  minor  importance  relative  to  the  taxa- 
tion of  railroad  corporations  see  Code  of  1873,  sees.  111-125;  Laws  of  Iowa, 
1878,  ch.  114;  Laws  of  Iowa,  1900,  ch.  44;  Laws  of  Iowa,  1902,  ehs.  58,  61,  62; 
Laivs  of  Iowa  (general),  1872,  ch.  89;  Laws  of  Iowa,  1876,  ch.  153;  Laws  of 


NOTES  AND  REFERENCES  329 

Iowa,  1884,  ch.  28;  Laws  of  Iowa,  1904,  chs.  46,  47,  75.     See  also  Brindley's 
History  of  Taxation  in  Iowa,  Vol.  II,  pp.  3-55. 

120  Laws  of  the  Territory  of  Iowa,  1839-1840,  eh.  42. 

121  Laws  of  Iowa,  1858,  ch.  92. 

122  See  Laws  of  Iowa,  1862,  ch.  84;  Laws  of  Iowa,  1864,  ch.  120;  Laws  of 
Iowa,  1866,  ch.  113;  Laws  of  Iowa,  1870,  chs.  165,  178;  Laws  of  Iowa  (gen- 
eral), 1872,  ch.  95;  Code  of  1873,  see.  2582. 

123  Xou's  of  Iowa,  1870,  ch.  165;  Laws  of  Iowa,  1876,  ch.  68;  Laws  of  Iowa, 
1884,  chs.  143,  185. 

124  Laws  of  Iowa,  1888,  ch.  28. 

125  Laws  of  Iowa,  1896,  eh.  33. 

128  Lows  of  Iowa,  1896,  ch.  36;  Laws  of  Iowa,  1907,  ch.  116.  See  also  Code 
of  1851,  sees.  1727,  2680;  Code  of  1873,  sees.  2611,  3979;  Code  of  1897,  sec. 
4807. 

127  For  the  taxation  of  express  companies  see  Code  of  1851,  see.  462 ;  Laws 
of  Iowa,  1858,  ch.  152;  Laws  of  Iowa,  1868,  ch.  180;  Laws  of  Iowa,  1870,  ch. 
100;  Laws  of  Iowa,  1896,  ch.  32;  Laws  of  Iowa,  1898,  eh.  31;  Laws  of  Iowa, 
1900,  ch.  45;  Laws  of  Iowa,  1902,  ch.  164;  Laws  of  Iowa,  1907,  ch.  58. 

For  the  taxation  of  freight  lines  and  equipment  companies  see  Laws  of  Iowa, 
1902,  eh.  62.  A  good  discussion  of  the  taxation  of  express  companies  is  to  be 
found  in  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  Chapter  VIII. 

i28Co^e  of  1851,  ch.  47,  Title  IX;  Laws  of  Iowa,  1896,  eh.  108;  Code  .f 
1873,  sees.  1324,  2582,  2611;  Laivs  of  Iowa  (general),  1872,  ch.  95;  Laws  of 
Iowa,  1876,  ch.  68;  Laws  of  Iowa,  1882,  eh.  104;  Laws  of  Iowa,  1888,  chs.  1, 
16;  Laws  of  Iowa,  1896,  ch.  107;  Code  of  1897,  sees.  4807,  4816;  Laws  of  Iowa, 
1904,  ch.  130. 

129  For  legislation  relative  to  the  taxation  of  telegraph  and  telephone  com- 
panies see  Laws  of  Iowa,  1868,  ch.  180;  Laws  of  Iowa,  1870,  eh.  100;  Laws  of 
Iowa,  1878,  ch.  59;  67  Iowa  250;  Code  of  1897,  sees.  1328-1332;  Laws  of  loiva, 
1900,  ch.  42 ;  Laws  of  Iowa,  1904,  chs.  44,  49 ;  Supplemental  Supplement  to  the 
Code  of  Iowa,  1915,  sees.  1346-k  to  1346-t,  inclusive.  See  also  Brindley's  His- 
tory of  Taxation  in  Iowa,  Vol.  I,  Chapter  IX. 

CHAPTEE  III 

130  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  227. 

131  Laws  of  the  Territory  of  Iowa,  1841-1842,  eh.  126. 

132  Laws  of  Iowa,  1856-1857,  ch.  188. 

133  For  minor  and  amendatory  acts  relating  to  the  State  Agricultural  Society, 
county  agricultural   societies,   and   similar   organizations,   see   Laws   of   Iowa, 


330  ECONOMIC  LEGISLATION  IN  IOWA 

1850-1851,  ch.  70;  Laivs  of  Iowa,  1852-1853,  ch.  45;  Laws  of  Iowa,  1855,  chs. 
41,  166;  Laws  of  Iowa,  1858,  ch.  91;  Revision  of  1860,  p.  304;  Laws  of  Iowa 
(special),  1860,  ch.  94;  Laics  of  Iowa,  1862,  ch.  31;  Laws  of  Iowa,  1864,  ch. 
109;  Laws  of  Iowa,  1866,  chs.  58,  128;  Laivs  of  Iowa,  1868,  ch.  136;  Laios  of 
Iowa  (general),  1872,  ch.  25;  Laws  of  Iowa  (public),  1874,  ch.  4;  Laws  of 
Iowa,  1876,  ch.  44;  Laws  of  Iowa,  1880,  eh.  147;  Laws  of  Iowa,  1884,  chs.  128, 
199;  Laws  of  Iowa,  1890,  ch.  44;  Laws  of  Iowa,  1892,  chs.  66,  67;  Laws  of 
Iowa,  1894,  eh.  137;  Laws  of  Iowa,  1896,  ch.  128;  Laws  of  Iowa,  1898,  chs.  42, 
43 ;  Laics  of  Iowa,  1900,  chs.  58,  59. 

For  the  acts  to  encourage  hedging  and  the  growing  of  timber  and  fruit  trees 
see  Laws  of  loxca,  1862,  ch.  51;  Laws  of  Iowa,  1868,  ch.  92;  Laws  of  Iowa 
(general),  1872,  ch.  3;  Laws  of  Iowa  (public),  1874,  ch.  45;  Laws  of  Iowa, 
1878,  eh.  50;  Laws  of  Iowa,  1880,  ch.  190;  Laics  of  Iowa,  1898,  ch.  53;  Laws  of 
Iowa,  1906,  chs.  52,  112;  Laws  of  Iowa,  1907,  ch.  55. 

For  legislation  relative  to  the  destruction  of  thistles  see  Laws  of  Iowa,  1868, 
eh.  143;  Laws  of  Iowa,  1870,  ch.  177;  Laws  of  loica  (general),  1872,  ch.  66; 
Laws  of  Iowa,  1892,  ch.  45;  Laws  of  Iowa,  1894,  ch.  91;  Laws  of  Iowa,  1896, 
eh.  78. 

For  acts  relating  to  the  Weather  and  Crop  Ser\ace  see  Laws  of  Iowa,  1878, 
eh.  45;  Laws  of  Iowa,  1890,  eh.  29;  Laws  of  Iowa,  1892,  chs.  57,  63;  Laws  of 
Iowa,  1896,  ch.  158 ;  Laws  of  Iowa,  1909,  ch.  86. 

For  legislation  relative  to  Farmers'  Institutes  see  Laws  of  Iowa,  1892,  ch. 
58;  Laws  of  Iowa,  1902,  chs.  69,  165;  Laws  of  Iowa,  1909,  ch.  110. 

Some  miscellaneous  acts  are  found  in  Laws  of  Iowa,  1884,  ch.  202;  Laws  of 
Iowa,  1906,  chs.  13,  213;  Laws  of  Iowa,  1907,  ch.  217;  Laws  of  Iowa,  1911,  ch. 
153 ;  Laws  of  Iowa,  1913,  chs.  142,  330. 

134  For  laws  relative  to  the  State  Board  of  Agriculture  see  Laws  of  Iowa, 
1900,  ch.  58;  Laws  of  Iowa,  1902,  ch.  166;  Laws  of  loica,  1904,  ch.  150;  Laws 
of  Iowa,  1906,  chs.  66,  67;  Laws  of  Iowa,  1909,  chs.  107,  108,  109;  Laws  of 
Iowa,  1913,  ch.  141;  Suppleme7ital  Supplement  to  the  Code  of  Iowa,  1915,  Title 
IX,  eh.  3. 

135  Laws  of  Iowa,  1911,  ch.  131;  Laics  of  Iowa,  1913,  eh.  248;  Supplemental 
Supplement  to  the  Code  of  Iowa,  1915,  Title  XIII,  ch.  14,  sec.  2775-a. 

136  iau-s  of  Iowa,  1913,  ch.  140;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  Title  IX,  ch.  3;  Laics  of  Iowa,  1917,  ch.  90. 

137  Laws  of  Iowa,  1858,  ch.  91. 

138  Laws  of  Iowa  (extra  session),  1862,  eh.  26;  Laws  of  Iowa,  1884,  ch.  27. 
130  For  more  complete  information  on  the  points  mentioned  in  the  text  see 

Laws  of  Iowa,  1884,  ch.  134;  Laics  of  Iowa,  1888,  eh.  180;  Laws  of  Iowa,  1894, 
eh.  107;  Laws  of  Iowa,  1904,  ch.  105;  Laws  of  Iowa,  1906,  chs.  124,  185,  213; 
Laws  of  Iowa,  1907,  chs.  216,  217;  Laws  of  Iowa,  1909,  ch.  151;  Laws  of  Iowa, 
1911,  ch.  114;  Laws  of  Iowa,  1913,  chs.  227,  228;  Supplemental  Supplement  to 
the  Code  of  Iowa,  1915,  sec.  2682-yl. 


NOTES  AND  REFERENCES  331 

140  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  226,  462-470;  Bevised 
Statutes  of  the  Territory  of  Iowa,  1842-1843,  ch.  20;  Laws  of  the  Territory  of 
Iowa,  1843-1844,  ch.  7;  Laws  of  Iowa,  1845-1846,  eh.  21;  Laws  of  Iowa,  1848- 
1849,  ch,  38;  Laws  of  Iowa,  1850-1851,  chs.  33,  73;  Laws  of  Iowa,  1852-1853, 
ch.  104.  • 

141  Co(?e  of  1851,  chs.  15,  53;  Laxos  of  Iowa,  1855,  ch.  135;  Laws  of  Iowa, 
1856-1857,  chs.  173,  179,  193;  Laws  of  Iowa  (extra  session),  1856,  ch.  34; 
Laics  of  Iowa,  1862,  ch.  102;  Laivs  of  Iowa,  1864,  ch.  65;  Laws  of  Iowa,  1868, 
eh.  144;  Laios  of  Iowa,  1870,  ch.  26;  Laws  of  Iowa  (general),  1872,  chs.  18, 
59;  Code  of  1873,  sees.  1446-1488;  Laws  of  Iowa  (public),  1874,  ch.  70;  Laws 
of  Iowa,  1880,  ch.  188. 

142  For  legislation  for  the  improvement  of  domestic  animals  see  Laws  of 
Iowa,  1888,  ch.  102;  Laws  of  Iowa,  1892,  ch.  66;  Laws  of  Iowa,  1906,  ch.  98; 
Laws  of  Iowa,  1909,  chs.  134,  135;  Laws  of  Iowa,  1911,  ch.  100;  Laws  of  Iowa, 
1913,  ch.  1&8. 

143  Laws  of  Iowa,  1909,  ch.  250 ;  Laws  of  Iowa,  1911,  ch.  203 ;  Laws  of  Iowa, 
1913,  ch.  333;  Supplemeiital  Supplement  to  the  Code  of  Iowa,  1915,  Title  XII, 
ch.  13-A;  Laws  of  Iowa,  1917,  chs.  187,  289,  363. 

^^'i  Laws  of  Iowa,  1862,  ch.  35;  Laws  of  Iowa,  1866,  ch.  10;  Laws  of  Iowa, 
1868,  ch.  185;  Code  of  1873,  sees.  4056-4064. 

145  For  the  acts  referred  to  in  this  paragraph  see  Laws  of  loica,  1884,  ch. 
189,  joint  resolution  7;  Laivs  of  Iowa,  1886,  chs.  79,  156;  Laivs  of  Iowa,  1888, 
ch.  67 ;  Laws  of  Iowa,  1892,  ch.  49 ;  Laws  of  Iowa,  1896,  ch.  58 ;  Laws  of  Iowa, 
1898,  ch.  63;  Laws  of  Iowa,  1900,  ch.  93;  Laws  of  Iowa,  1902,  ch.  170;  Laws  of 
Iowa,  1904,  chs.  89,  90,  91;  Laws  of  Iowa,  1906,  ch.  170;  Laws  of  Iowa,  1909, 
ch.  150. 

146  Laws  of  Iowa,  1906,  ch.  170 ;  Laws  of  Iowa,  1909,  ch.  151 ;  Laws  of  Iowa, 
1911,  ch.  114;  Laws  of  Iowa,  1913,  chs.  209,  210,  211,  227,  321;  Supplemental 
Supplement  to  the  Code  of  Iowa,  1915,  Title  XII,  ch.  14-B;  Laws  of  Iowa, 
1917,  ch.  329. 

'i-^'!  Laws  of  Iowa,  1911,  ch.  115;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  Title  XII,  ch.  14. 

148  Code  of  1851,  ch.  54;  Laws  of  Iowa,  1862,  ch.  34;  Laws  of  Iowa,  1868, 
eh.  108;  Laws  of  loiva,  1870,  ch.  151;  Laws  of  Iowa  (general),  1872,  chs.  14, 
88;  Laws  of  Iowa,  1892,  ch.  67. 

Laws  of  Iowa,  3862,  ch.  76;  Laws  of  Iowa  (extra  session),  1862,  eh.  20; 
Laws  of  Iowa,  1884,  ch.  70;  Laws  of  Iowa,  1888,  ch.  42;  Laws  of  Iowa,  1894, 
ch.  84;  Laws  of  Iowa,  1907,  ch.  20;  Laws  of  Iowa,  1909,  -ch.  32;  Laws  of  loioa, 
1913,  ch.  42. 

Laws  of  the  Territory  of  Iowa,  1839-1840,  ch.  27;  Laws  of  the  Territory  of 
Iowa,  1843-1844,  ch.  8;  Laws  of  the  Territory  of  Iowa,  1845,  eh.  10;  Laws  of 
Iowa,  1858,  eh.  62;  Eevision  of  1860,  ch.  91,  art.  8;  Laws  of  Iowa,  1864,  eh.  60; 


332  ECONOMIC  LEGISLATION  IN  IOWA 

Laws  of  Iowa,  1892,  ch.  37;  Laws  of  Iowa,  1907,  ch.  121;  Laws  of  Iowa,  1909, 
chs.  136,  137;  Laws  of  Iowa,  1911,  ch,  101;  Laws  of  Iowa,  1913,  chs.  42,  189, 
190;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title  XII,  eh.  16-F. 

CHAPTEE  IV 

^^9  Laws  of  the  Territory  of  Iowa,  1843-1844,  ch.  101;  Laws  of  the  Terri- 
tory of  Iowa,  1848-1849,  eh.  103;  Laws  of  Iowa,  1864,  chs.  37,  91;  Laws  of 
Iowa,  1866,  eh.  66;  Laws  of  Iowa,  1868,  ch.  133;  Laws  of  Iowa,  1878,  ch.  181; 
Laws  of  Iowa,  1894,  eh.  107;  Laws  of  Iowa,  1906,  eh.  82;  Laws  of  Iowa,  1911, 
ch.  29. 

isoiaws  of  Iowa,  1854-1855,  ch.  83;  Laws  of  Iowa,  1856-1857,  ch.  103. 

151  Laws  of  Iowa,  1866,  ch.  73;  Laws  of  Iowa,  1868,  ch.  178;  Laws  of  Iowa, 
1870,  ch.  111. 

152  Laws  of  Iowa,  1892,  ch.  71 ;  Laws  of  Iowa,  1894,  ch.  159 ;  Laws  of  Iowa, 
1906,  ch.  104. 

CHAPTER  V 

153  For  special  acts  authorizing  dams  see  Laws  of  the  Territory  of  Iowa, 
1838-1839,  pp.  337-343;  Laws  of  the  Territory  of  Iowa,  1839-1840,  chs.  61,  62, 
65,  67,  74;  Laws  of  the  Territory  of  loiva  (special  session),  1840,  chs.  2,  3,  23; 
Laws  of  the  Territory  of  Iowa,  1840-1841,  chs.  8,  18,  56,  66,  81,  83,  84,  95, 
100;  Laws  of  the  Territory  of  Iowa,  1841-1842,  chs.  12,  21,  28,  50,  56,  74,  81; 
Laws  of  the  Territory  of  Iowa,  1842-1843,  chs.  2,  53,  58,  60,  67,  68,  82;  Laws 
of  the  Territory  of  Iowa,  1843-1844,  chs.  17,  69,  93,  104;  Laws  of  Iowa,  1852- 
1853,  ch.  Ill;  Latvs  of  loioa,  1854-1855,  chs.  67,  103,  104;  Laivs  of  Iowa,  1856- 
1857,  chs.  144,  214,  219;  Laws  of  Iowa,  1858,  chs.  15,  84;  Laws  of  Iowa,  1870, 
ch.  128;  see  also  Laics  of  Iowa,  1855,  joint  resolution  20. 

'i^si  Laws  of  Iowa,  1855,  ch.  92.  See  also  Laws  of  Iowa  (special),  1860,  ch. 
62. 

^^5  Laws  of  Iowa,  1864,  ch.  31;  Laws  of  Iowa,  1866,  ch.  119;  Laws  of  Iowa 
(public),  1872,  ch.  79, 

156  Code  of  1873,  sees.  1188-1206,  1236-1240.  The  same  provisions  are  con- 
tinued in  Code  of  1897,  sees.  1921-1938,  1990-1994;  Laws  of  Iowa,  1917,  ch.  25. 

157  Beport  of  the  Iowa  State  Drainage,  Waterways  and  Conservation  Com- 
mission (1910),  pp.  33,  34. 

158  United  States  Statutes  at  Large,  "Vol.  IX,  p.  519. 

150  Laws  of  Iowa,  1852-1853,  ch.  13.  See  also  Laws  of  Iowa,  1852-1853,  ch. 
65;  Laws  of  Iowa,  1854-1855,  ch.  110;  Laws  of  Iowa  (extra  session),  1856,  ch. 
36;  Laws  of  Iowa,  1870,  ch.  135. 


NOTES  AND  REFERENCES  333 

160  Laws  of  Iowa,  1858,  ch.  132;  Laws  of  Iowa  (extra  session),  1861,  ch.  8; 
Laws  of  Iowa,  1862,  clis.  77,  135;  Laws  of  Iowa,  1864,  ch.  67. 

161  For  a  review  of  the  controversy  between  the  State  and  the  national  gov- 
ernment see  Beport  of  the  Transactions  of  the  Land  Department  of  Iowa,  1889, 
pp.  26-110. 

The  following  is  a  synopsis  of  the  State  legislation  relative  to  the  Swamp 
Land  Grant: 

The  commissioner  of  the  State  land  oflSce  was  authorized  to  take  such  steps 
as  were  necessary  to  secure  the  swamp  and  overflowed  lands  to  the  State,  to 
sell  such  lands,  and  to  pay  the  balance  over  expenses  into  the  State  treasury. 
The  G-ovemor  was  authorized  to  discharge  the  duties  of  commissioner  until 
such  commissioner  should  be  elected. —  Laws  of  Iowa,  1850-1851,  ch.  69. 

The  Fourth  General  Assembly  granted  the  swamp  lands  to  the  several  coun- 
ties. The  counties  were  to  carry  out  the  provisions  of  the  grant  relative  to  the 
protection  and  reclamation  of  the  lands.  The  selecting  agent  was  required  to 
report  to  the  Secretary  of  State. —  Laws  of  Iowa,  1852-1853,  ehs.  13,  65. 

In  1855  the  Governor  was  authorized  to  draw  from  the  United  States  the 
swamp  land  indemnity  money.  In  unorganized  counties  swamp  lands  could  not 
be  disposed  of  until  title  was  perfected  in  the  State.  Organized  counties  were 
authorized  to  apply  the  proceeds  of  irreclaimable  lands  to  the  erection  of 
public  buildings.  In  such  cases  the  drainage  commissioner  was  required  to  pay 
over  the  proceeds  to  the  county  treasurer.  Swamp  lands  were  not  to  be  sold 
for  less  than  $1.25  per  acre.  Trespass  on  swamp  lands  was  also  prohibited. — 
Laws  of  Iowa,  1854-1855,  chs.  110,  138,  156. 

Provision  was  made  in  1856  that  swamp  land  funds  should  be  paid  into  the 
county  treasury  —  to  be  paid  out  only  on  the  order  of  the  county  .judge  and 
swamp  land  commissioner.  The  act  also  provided  for  the  loaning  of  the  swamp 
land  fund. —  Laivs  of  Iowa  (extra  session),  1856,  ch.  36. 

All  exemption  laws  were  repealed  by  the  Sixth  General  Assembly. —  Laivs  of 
Iowa,  1856-1857,  ch.  115. 

The  Seventh  General  Assembly  authorized  the  Governor  to  appoint  an  agent 
to  go  to  Washington  to  effect  a  settlement  of  the  swamp  land  controversy  with 
the  United  States,  also  to  appoint  agents  to  complete  the  selection  of  swamp 
lands  in  unorganized  counties.  Counties  were  authorized  to  use  the  proceeds 
from  the  sale  of  swamp  lands  for  the  erection  of  buildings  for  educational  pur- 
poses, for  roads,  bridges,  and  railroads  after  the  question  had  been  voted  on  by 
the  people.  Another  act  extended  the  time  for  proving  up  and  perfecting  pre- 
emptions.—  Laws  of  Iowa,  1858,  chs.  3,  100,  132. 

The  control  of  swamp  lands  in  the  several  counties  was  given  to  the  boards  of 
supervisors  in  1861. —  Laws  of  Iowa  (extra  sessdon),  1861,  ch.  8. 

The  Ninth  General  Assembly  provided  for  the  appointment  of  general  agents 
by  the  Governor  to  settle  swamp  land  matters  with  the  commissioner  of  the 
general  land  office.  It  provided  for  the  reception  and  location  of  indemnity 
scrip.    Locating  agents  were  required  to  report  to  the  State  land  office.     Spe- 


334  ECONOMIC  LEGISLATION  IN  IOWA 

cial  county  agents,  to  settle  with  the  commissioner  of  the  general  land  office, 
were  provided  for.  Swamp  land  indemnity  money  when  received  was  to  be 
paid  into  the  State  treasury,  and  paid  out  only  to  the  authorized  agent  of  the 
county. —  Laws  of  Iowa,  1862,  ch.  160. 

The  boards  of  supervisors  were  authorized  to  have  swamp  lands  appraised 
and  to  sell  some  for  not  less  than  the  appraised  value  in  1864. —  Laws  of  Iowa, 
1864,  ch.  67. 

Mr.  J.  A.  Harvey  was  appointed  commissioner  to  adjust  the  swamp  land 
matters  with  the  general  government  in  1866.  Two  years  later  provision  was 
made  for  filling  the  vacancy  should  the  position  become  vacant;  and  in  1874 
the  office  of  swamp  land  commissioner  was  abolished. —  Laws  of  Iowa,  1866, 
ch.  79;  Laws  of  Iowa,  1868,  ch.  135;  Laws  of  Iowa,  1874,  ch.  24. 

The  Seventeenth  General  Assembly  authorized  the  State  Treasurer  to  pay 
over  the  swamp  land  indemnity  fund  of  each  county  to  the  county  treasurer, 
and  the  board  of  supervisors  was  authorized  to  make  such  disposition  of  the 
money  as  should  be  deemed  for  the  best  interests  of  the  county.-  Laws  of 
Iowa,  1878,  ch.  134. 

The  Twenty-eighth  General  Assembly  provided  for  the  payment  by  the 
Treasurer  of  State  of  swamp  land  indemnity  money  direct  to  the  county 
authorities. —  Laws  of  Iowa,  1900,  ch.  146. 

For  other  minor,  amendatory,  and  special  laws  and  resolutions  relative  to  the 
swamp  lands  see  Laws  of  Iowa,  1856-1857,  joint  resolution  3;  Laws  of  Iowa, 
1858,  ch.  76;  Laws  of  Iowa  (special),  1860,  ehs.  49,  56,  116;  Laws  of  Iowa, 
1862,  chs.  77,  86,  135,  joint  resolution  17;  Laws  of  Iowa,  1866,  ehs.  117,  131, 
joint  resolution  12;  Laws  of  Iowa,  1868,  chs.  12,  37,  joint  resolution  5;  Laws 
of  Iowa,  1870,  chs.  10,  11,  52,  119,  135,  157;  Laws  of  Iowa  (local),  1872,  ch. 
45,  joint  resolution  17;  Laws  of  Iowa  (local),  1874,  ch.  37;  Laws  of  Iowa, 
1882,  ch.  171;  Laws  of  Iowa,  1884,  joint  resolution  19;  Laws  of  Iowa,  1886, 
ch.  81;  Laws  of  Iowa,  1888,  concurrent  resolutions  3,  4. 

162  Laws  of  Iowa,  1852-1853,  ehs.  13,  65. 

163  Laws  of  Iowa,  1862,  ch.  70. 

164  Laws  of  Iowa,  1870,  ch.  159.  The  Code  of  1873,  sees.  1207-1227,  re- 
arranges the  law,  but  makes  no  additions  to  it  on  the  subject  of  drains. 

165  Laws  of  Iowa  (general),  1872,  ch.  120. 

168  Laws  of  Iowa,  1876,  ch.  140;  Laws  of  Iowa,  1878,  ch.  121;  Laws  of  Iowa, 
1880,  ehs.  85,  191;  Laws  of  Iowa,  1882,  ehs.  44,  89. 

167  Laws  of  Iowa,  1884,  chs.  186,  188.  See  also  amendatory  act  in  Laws  of 
Iowa,  1888,  ch.  97. 

168  Laws  of  Iowa,  1888,  ch.  97. 
160  Laws  of  Iowa,  1884,  ch.  188. 
170  Fleming  v.  Hull,  73  Iowa  598. 


NOTES  AND  REFERENCES  335 

171  Laws  of  Iowa,  1888,  ch.  96. 

172  For  the  complete  list  of  drainage  acts  passed  1884-1904  see  Laws  of 
Iowa,  1884,  chs.  186,  188;  Laws  of  Iowa,  1886,  ehs.  55,  139;  Laws  of  Iowa, 
1888,  chs.  96,  97;  Laws  of  Iowa,  1890,  ch.  6;  Laws  of  Iowa,  1896,  ch.  47;  Code 
of  1897,  sees.  1939-1966;  Laws  of  Iowa,  1902,  ch.  78;  Laws  of  Iowa,  1904,  chs, 
67,  68,  69,  70,  186,  joint  resolution  6. 

173  Beebe  et  al.  v.  Magoun,  122  Iowa  94.  See  also  Fleming  v.  Hull,  73  Iowa 
598;  and  Smith  v.  Peterson,  123  Iowa  672. 

174  Smith  V.  Peterson,  123  Iowa  672. 

175  Laws  of  Iowa,  1904,  ch.  67 ;  Ross  v.  Supervisors,  128  Iowa  427. 

176  Laws  of  Iowa,  1904,  ch.  68. 

177  Laws  of  Iowa,  1904,  chs.  67,  69,  70,  186. 

-L^s  Laws  of  Iowa,  1904,  joint  resolution  6;  Laws  of  Iowa,  1906,  joint  resolu- 
tion 1;  Laws  of  Iowa,  1907,  joint  resolution  2,  p.  282. 

179  Laws  of  Iowa,  1909,  eh.  249. 

180  The  following  men  were  appointed  by  the  Governor  to  serve  on  the  com- 
mission: Mr.  lA.  C.  Miller,  of  Des  Modnes;  Mr.  L.  W.  Anderson,  of  Cedar  Rap- 
ids; Mr.  E.  A.  Burgess,  of  Sioux  Citj;  Mr.  A.  F.  Frudden,  of  Dubuque;  Mr, 
I.  W.  Keerl,  of  Mason  City;  Mr.  W.  H.  Stevenson,  of  Ames;  and  Professor 
T.  H.  Maebride  of  the  State  University  of  Iowa. 

181  The  law  states  that  the  investigations  of  the  commission  shall  include,  in 
addition  to  the  matters  cited  relative  to  drainage,  the  following: 

"Art.  5.  The  question  of  forests  and  their  preservation  and  their  culture  in 
the  state,  and  especially  with  reference  to  the  influence  of  forests  upon  the 
flood  conditions  of  the  rivers  and  the  erosion  and  waste  of  the  soils; 

"Art.  6.  It  is  the  clear  intent  and  purpose  of  this  bill  that  the  close  inter- 
relation of  the  several  phases  of  river  development  shall  be  shown,  and  the 
necessity  for  a  broad  comprehensive  treatment  of  our  rivers  shall  be  studied 
and  reported  upon; 

"Art.  7.  The  general  question  of  the  relation  of  the  state  to  the  preserva- 
tion of  the  fertility  of  the  Iowa  soils; 

* '  Art.  8.  The  general  question  of  the  wise  and  conservative  development  and 
use  of  the  mineral  resources  of  the  state,  especially  with  reference  to  the  min- 
ing of  coals ; 

' '  Art.  9.  And  the  general  question  of  the  nature  and  condition  of  such  lakes 
in  Iowa  as  now  belong  to  the  state,  the  relation  of  lakes  and  streams  to  the 
preservation  of  such  varieties  of  fish,  birds,  and  native  animals  as  are  desirable, 
and  the  preservation  of  the  peat  beds  which  now  belong  to  the  state. ' ' 

182  Laws  of  Iowa,  1909,  oh.  249,  sec.  2;  Eeport  of  the  Iowa  State  Drainage 
Waterways  and  Conservation  Commission,  1910,  p.  20  et  seq. 


336  ECONOMIC  LEGISLATION  IN  IOWA 

183  Laws  of  Iowa,  1911,  chs.  87,  88. 

184  Lows  of  loiva,  1913,  ch.  158;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  sec.  1989-a61, 

185  For  drainage  of  highways  see  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  Title  X,  ch.  2-B. 

For  drainage  laws  enacted  from.  1906  to  1917  inclusive  see  Laws  of  Iowa, 
1906,  ch.  9  (sections  15,  16,  17),  chs.  84,  85,  86;  Laws  of  Iowa,  1907,  chs.  94, 
95;  Laws  of  Iowa,  1909,  chs.  81,  97,  117,  118,  119,  120,  121,  122,  249;  Laxvs  of 
Iowa,  1911,  chs.  85,  86,  87,  88,  89;  Laws  of  Iowa,  1913,  chs.  145,  153,  154,  155, 
156,  157,  158,  159;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title 
X,  chs.  2-A,  2-B;  Laws  of  Iowa,  1917,  chs.  28,  127,  161,  221,  224,  264,  302,  307, 
344,  347,  414,  415. 

For  acts  relative  to  draining  coal,  lead,  and  zinc  mines  see  Laws  of  Iowa, 
1864,  chs.  37,  91;  Laws  of  Iowa,  1866,  ch.  66;  Laws  of  Iowa,  1906,  ch.  82, 

For  acts  relative  to  United  States  levees  see  Laws  of  Iowa,  1896,  ch.  46; 
Laws  of  Iowa,  1906,  ch.  83;  Laws  of  Iowa,  1907,  ch.  93;  Laws  of  Iowa,  1911, 
ch.  86. 

For  miscellaneous  and  special  acts  on  drainage  see  Laws  of  Iowa,  1852-1853, 
eh.  98;  Laws  of  Iowa  (extra  session),  1856,  ch.  33;  Laws  of  Iowa,  1858,  chs.  68, 
■83;  Laws  of  Iowa  (special),  1860,  ch.  70;  Laws  of  Iowa,  1862,  ch.  104;  Laws 
of  Iowa,  1886,  ch.  17;  Laws  of  Iowa,  1904,  concurrent  resolution  12;  Laws  of 
Iowa,  1906,  ch.  9  (sees.  15,  16,  17) ;  Laws  of  Iowa,  1907,  concurrent  resolu- 
tion 3. 

186  Laws  of  Iowa,  1856-1857,  ch.  164;  Laws  of  Iowa,  1858,  ch.  147.  The 
dates  of  the  closed  season  were  again  changed  by  Laws  of  Iowa,  1862,  eh.  115, 
and  by  Laws  of  Iowa  (public),  1872,  ch.  117.  See  also  Laws  of  Iowa  (public), 
1874,  ch.  69. 

187  Laws  of  Iowa,  1862,  ch.  4;  Laws  of  Iowa  (public),  1872,  ch.  54. 

188  Laws  of  Iowa,  1868,  ch.  113;  Laws  of  Iowa,  1870,  ch.  74. 

189  Laws  of  Iowa,  1874  (public),  ch.  50;  Laws  of  Iowa,  1874  (local),  ch.  74. 

190  Laws  of  Iowa,  1876,  ch.  70.    Also  Laws  of  Iowa,  1878,  ch.  80. 

191  For  fish  and  game  laws  enacted  from  1876  to  1897  see  Laws  of  Iowa, 
1876,  ch.  122 ;  Laios  of  Iowa,  1878,  chs.  156,  188 ;  Laws  of  Iowa,  1880,  chs.  92, 
100,  123,  156,  193;  Laivs  of  Iowa,  1882,  chs.  17,  99;  Laws  of  Iowa,  1884,  chs.  9, 
67,  144,  164;  Laws  of  Iowa,  1886,  chs.  63,  155;  Laws  of  Iowa,  1888,  chs.  103, 
134;  Laws  of  Iowa,  1890,  ch.  34;  Laws  of  Iowa,  1892,  ch.  46;  Laws  of  Iowa, 
1894,  ehs.  64,  65;  Laws  of  Iowa,  1896,  ch.  80. 

192  Code  of  1897,  sec.  2539.  For  the  law  as  it  was  in  1897  see  Code  of  1897, 
sees.  2539-2563. 

193  For  the  fish  and  game  laws  enacted  from  1898  to  1917  see  Laws  of  Iowa, 
1898,  chs.  64,  65,  66;  Laws  of  Iowa,  1900,  chs.  86,  87;  Laws  of  Iowa,  1902,  chs. 


NOTES  AND  REFERENCES  337 

103,  104,  201;  Laws  of  Iowa,  1904,  ehs.  92,  93,  94,  95,  96;  Laws  of  Iowa,  1906, 
chs.  108,  160;  Laws  of  Iowa,  1907,  ch.  210,  concurrent  resolution  9;  Laws  of 
Iowa,  1909,  ehs.  152,  153,  154,  155,  245;  Laws  of  Iowa,  1911,  ehs.  116,  117, 
118;  Laios  of  Iowa,  1913,  chs.  203,  204,  205,  206;  Supplemental  Supplement  to 
the  Code  of  Iowa,  1915,  Title  XII,  chs.  15,  15-A;  Laws  of  Iowa,  1917,  chs.  81, 
ni,  168,  202,  233,  289,  396. 

CHAPTEE  VI 

194  This  chapter  follows  to  some  extent  the  articles  by  Dr.  Frank  E.  Horack 
on  Some  Phases  of  Corporate  Legislation  in  the  Territory  of  Iowa  and  Some 
Phases  of  Corporate  Regulation  in  the  State  of  Iowa  in  The  Iowa  Journal  of 
History  and  Politics,  Vol.  II,  pp.  381-393  and  484-519. 

195  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  361-364.  See  also  Laws 
of  the  Territory  of  Wisconsin,  1836-1838,  pp.  226-230. 

196  For  the  special  acts  of  incorporation  passed  during  the  Territorial  period 
see  Laivs  of  the  Territory  of  Iowa,  1838-1839,  pp.  231,  239,  2ll,  243,  254,  255, 
269;  Laws  of  the  Territory  of  Iowa,  1839-1840,  chs.  16,  29,  34,  41,  43,  50; 
Laws  of  the  Territory  of  Iowa,  1840-1841,  eh.  63;  Laws  of  the  Territory  of 
Iowa,  1841-1842,  chs.  28,  91,  119,  124;  Laivs  of  the  Territory  of  Iowa,  1842- 
1843,  chs.  18,  56,  58;  Laws  of  the  Territory  of  loiva,  1843-1844,  chs.  67,  79, 
101,  109,  123,  127. 

197  Constitution  of  the  State  of  Iowa,  1846,  Art.  VIII,  sec.  2. 

198  Laws  of  loiva,  1846-1847,  ch.  81.  For  an  amendatory  act  see  Laws  of 
loiva,  1848-1849,  ch.  89. 

199  For  the  slight  modifications  and  additions  to  the  law  of  1847  as  they  ap- 
pear in  the  codification  of  1851,  see  Code  of  1851,  Title  X,  ch.  43. 

For  the  new  sections  of  the  law  see  Code  of  1851,  sees.  693,  699,  700,  702, 
703,  704,  705,  706,  707. 

200  Constitution  of  the  State  of  Iowa,  1857,  Art.  VIII,  sees.  1,  2,  3,  12. 

201  For  the  corporation  laws  enacted  in  1858-1872,  see  Laws  of  loiva,  1858, 
ch.  85;  Revision  of  1860,  ch.  52,  Art.  2,  sees.  1185,  1186;  Laws  of  Iowa,  1868, 
ch.  133;  Laws  of  Iowa,  1870,  eh.  172;  Laxos  of  Iowa  (general),  1872,  chs.  36, 

65,  83,  111. 

202  Code  of  1873,  sec.  1090. 

203  For  the  corporation  laws  enacted  between  1874  and  1884  see  Laws  of 
Iowa,  1878,  ch.  23;  Laws  of  loiua,  1880,  eh.  57;  Laws  of  Iowa,  1884,  chs.  22, 
139. 

For  legalizing  acts  during  the  same  period  see  Laws  of  Iowa,  1876,  chs.  1, 
32,  82;  Laws  of  Iowa,  1878,  chs.  24,  61,  86;  Laws  of  Iowa,  1880,  ehs.  19,  33, 

66,  102,  104,  160;  Laws  of  Iowa,  1882,  ch.  77. 

22 


338  ECONOMIC  LEGISLATION  IN  IOWA 

204  Laws  of  Iowa,  1886,  ch.  76.  For  other  acts  of  1886  relative  to  corpora- 
tions see  Latvs  of  Iowa,  1886,  chs.  57,  125. 

205  Baron  v.  Bumside,  121  United  States  186. 

206  Laws  of  Iowa,  1888,  ch.  86. 

207  Code  of  1897,  sec.  1607. 

208  Laws  of  Iowa,  1888,  ch.  88.     See  also  chs.  174,  176. 

209  Laws  of  Iowa,  1896,  chs.  81,  98. 

210  Code  of  1897,  see.  1612. 

211  Code  of  1897,  sec.  1621. 

212  Code  of  1897,  sees.  1627,  1631. 

213  Code  of  1897,  sees.  1637,  1639,  1640,  1641. 

For  the  complete  law  see  Code  of  1897,  Title  IX,  ch.  1,  sees.  1607-1641. 

214  Laws  of  Iowa,  1898,  chs.  40,  41 ;  Laws  of  Iowa,  1900,  chs.  56,  57 ;  Laws 
of  Iowa,  1902,  chs.  66,  67,  226;  Laws  of  Iowa,  1904,  chs.  54,  55;  Laws  of  Iowa, 
1906,  eh.  64. 

215  Laws  of  Iowa,  1907,  ch.  70. 

216  Laws  of  Iowa,  1907,  ch.  71. 

217  Laws  of  Iowa,  1907,  chs.  72,  73.  See  also  Laws  of  Iowa,  1907,  chs.  183, 
184. 

218  Laws  of  Iowa,  1909,  chs.  1Q4,  105,  272. 

219  Lau's  of  Iowa,  1911,  chs.  74,  75,  76;  Laws  of  Iowa,  1913,  chs.  135,  136, 
138. 

220  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title  IX,  ch.  1.  See 
also  Laws  of  Iowa,  1917,  chs.  96,  128.  , 

221  Laws  of  Iowa,  1904,  ch.  66. 

222  Laws  of  Iowa,  1913,  ch.  137. 

223  Compton  Co.  v.  Allen,  216  Fed.  537. 

224  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title  TX,  ch.  13-B. 

225  Code  of  1873,  sec.  1297;  Laws  of  Iowa,  1888,  ch.  28,  see.  6,  ch.  84. 

226  Laws  of  Iowa,  1890,  eh.  28. 

■^^T  Laws  of  Iowa,  1896,  ch.  22;  Laws  of  Iowa,  1907,  chs.  187,  188;  Laivs  of 
Iowa,  1909,  eh.  225;  Laws  of  Iowa,  1913,  ch.  295.  An  appropriation  of  $5000 
was  made  in  1917  for  the  purpose  of  investigating  the  charges  that  an  illegal 
combination  existed  among  the  manufacturers  of  cement  of  the  quality  used  in 
bridge  and  culvert  construction. —  Laws  of  Iowa,  1917,  ch.  273. 


NOTES  AND  REFERENCES  339 

228  Laws  of  Iowa,  1846-1847,  eh.  100,  sec.  10;  Code  of  1351,  sec,  458;  Con- 
stitution of  Iowa,  1857,  Art.  VIII,  sec.  2. 

229  Code  of  1897,  sees.  1323-1325. 

230  Code  of  1897,  sees.  1318,  1319,  1327,  1350;  Laws  of  Iowa,  1911,  eh.  63. 

CHAPTEE  VII 

231  Zartman  and  Price's  Yale  Readings  in  Life  Insurance,  p.  77. 

232  iows  of  the  Territory  of  Wisconsin,  1837-1838,  chs.  13,  101. 

^33  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  269.  For  an  amendatory 
act  see  Laws  of  the  Territory  of  Iowa,  1839-1840,  eh.  34. 

234  Laws  of  the  Territory  of  Iowa,  1839-1840,  ch.  41 ;  Laivs  of  the  Territory 
of  Iowa,  1841-1842,  ch.  62. 

235  Lows  of  the  Territory  of  Iowa,  1841-1842,  chs.  119,  124;  Laics  of  the 
Territory  of  Iowa,  1843-1844,  ch.  67. 

236  Constitution  of  the  State  of  Iowa,  1846,  Art.  VIII,  sec.  2. 

237  Laws  of  Iowa,  1856-1857,  eh.  149. 

^38  Laws  of  Iowa,  1858,  ch.  12;  Laws  of  Iowa,  1862,  ch.  39;  Laws  of  Iowa, 
1866,  ch.  106. 

239  The  report  required  is  the  same  as  that  which  is  required  at  present. — 
Code  of  1897,  sec.  1714. 

240  Laws  of  Iowa,  1868,  ch,  138. 

241  Por  laws  relative  to  the  kinds  of  insurance  and  risks  authorized  see  Laws 
of  Iowa,  1886,  chs.  145,  157;  Laws  of  Iowa,  1892,  ch.  29;  Laws  of  Iowa,  1894, 
ch.  32;  Laws  of  Iowa,  1900,  chs.  60,  61;  Laws  of  Iowa,  1902,  chs.  70,  71,  72; 
Laws  of  Iowa,  1906,  chs.  68,  69,  70,  71,  72;  Laws  of  Iowa,  1907,  ch.  82;  Laws 
of  Iowa,  1909,  ch.  112;  Laws  of  Iowa,  1911,  ch.  18,  sees.  4,  5,  21,  ch.  78;  Laws 
of  Iowa,  1913,  chs.  143,  144;  Supplement  to  the  Code  of  Iowa,  1913,  sees.  1709, 
1710;  Laivs  of  Iowa,  1917,  ch,  428. 

24:2  Laws  of  Iowa  (general),  1872,  ch.  106. 

24:3  Laws  of  Iowa,  1876,  ehs.  37,  60;  Laws  of  Iowa,  1878,  chs.  39,  111;  Laws 
of  Iowa,  1880,  ehs.  210,  211;  Laivs  of  Iowa,  1882,  ehs.  Ill,  149;  Laws  of  Iowa, 
1886,  ch.  157;  Laws  of  Iowa,  1894,  eh.  31;  Laws  of  Iowa,  1896,  chs.  22,  23; 
Laws  of  Iowa,  1898,  ehs.  44,  45;  Laws  of  Iowa,  1900,  chs.  62,  63,  64;  Laws  of 
Iowa,  1902,  ch.  73;  Laws  of  Iowa,  1906,  eh.  73;  Laws  of  Iowa,  1907,  eh.  75. 

244  The  form  of  the  standard  fire  insurance  policy  for  Iowa  is  to  be  found  in 
Laws  of  Iowa,  1907,  ch.  76,  sec.  2.  See  also  Laws  of  Iowa,  1911,  ch.  18,  sees. 
9,  10. 


340  ECONOMIC  LEGISLATION  IN  IOWA 

2i5  Laivs  of  Iowa,  1909,  ch.  Ill;  Laws  of  Iowa,  1911,  chs.  18,  79;  Laws  of 
Iowa,  1917,  ch.  185. 

^'i^^  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title  IX,  ch.  4; 
Laws  of  Iowa,  1917,  ehs.  155,  234,  429. 

247  For  the  provisions  relative  to  mutual  assessment  associations  see  Laws  of 
the  Territory  of  Iowa,  1838-1839,  pp.  269-274;  Laws  of  the  Territory  of  Iowa, 
1843-1844,  ch.  67;  Code  of  1851,  sec.  706;  Laws  of  loica,  1868,  ch.  138;  Laws 
of  loica,  1870,  ch.  108;  Laws  of  Iowa  (general),  1872,  ch.  107;  Laws  of  Iowa 
(public),  1874,  ch.  55;  Laws  of  lotva,  1876,  ch.  103. 

248  For  acts  relative  to  mutual  assessment  associations  1878-1896,  see  Laws 
of  Iowa,  1878,  chs.  39,  104;  Laws  of  Iowa,  1884,  ch.  11;  Laws  of  Iowa,  1888, 
ch.  93. 

249  For  acts  relative  to  mutual  assessment  associations  1897-1915,  see  Code 
of  1897,  Title  IX,  ch.  5;  Laws  of  Iowa,  1902,  ch.  74;  Laws  of  Iowa,  1907,  ch. 
80;  Laws  of  Iowa,  1911,  ch.  18;  Supplemental  Supplement  to  the  Code  of  Iowa, 
1915,  Title  IX,  ch.  4,  Sec.  1758-i;  Laws  of  Iowa,  1917,  chs.  42,  412. 

250  Iowa  Insurance  Beport,  1913,  pp.  42-49. 

251  Laws  of  Iowa,  1917,  ch.  180, 

252  Laws  of  Iowa,  1868,  ch.  173;  see  Code  of  1897,  sec.  1773. 

253 ' '  There  shaU  be  paid  by  every  company  doing  business  in  this  State, 
except  companies  organized  under  the  laws  of  this  State,  the  following  fees :  — 

"Upon  filing  declaration  or  certified  copy  of  charter,  twenty-five  dollars. 

"Upon  filing  annual  statement,  twenty  dollars. 

"For  each  certificate  of  authority,  and  certified  copy  thereof,  two  doUars. 

'Tor  every  copy  of  any  paper  filed  in  the  department,  the  sum  of  twenty 
cents  per  folio,  and  for  affixing  the  official  seal  to  such  copy,  and  certifying  the 
same,  one  dollar. 

' '  For  valuing  policies  of  life  insurance  companies,  ten  dollars  per  million  of 
insurance,  or  any  fraction  thereof. 

"For  official  examinations  of  companies  under  this  act,  the  actual  expense 
incurred. 

"And  companies  organized  under  the  laws  of  this  State  shall  pay  the  fol- 
lowing fees: 

"For  filing  and  examination  of  the  first  application  of  any  company,  and 
the  issuing  of  the  certificate  of  license  thereon,  ten  dollars. 

"For  filing  each  annual  statement,  and  issuing  the  renewal  of  license  re- 
quired by  law,  three  dollars. 

"For  each  certificate  of  authority  to  its  agents,  fifty  cents. 

"When,  by  the  laws  of  any  other  State,  any  taxes,  fines,  penalties,  licenses, 
fees,  deposits  of  money  or  of  securities,  or  other  obligations  or  prohibitions, 
are  imposed,  or  would  be  imposed,  on  insurance  companies  of  this  State  doing, 
or  that  might  seek  to  do,  business  in  such  other  State,  or  upon  their  agents 


NOTES  AND  REFERENCES  341 

therein,  so  long  as  such  laws  continue  in  force  the  same  obligations  and  prohi- 
bitions, of  whatever  kind,  shall  be  imposed  upon  all  insurance  companies  of 
such  other  State  doing  business  within  this  State,  or  upon  their  agents  here. ' ' — 
Laws  of  Iowa  (general),  1872,  ch.  106,  sees.  4,  5. 

254  For  laws  for  the  protection  of  the  assured  see  Laws  of  Iowa,  1876,  chs. 
55,  164;  Laws  of  Iowa,  1890,  ch.  33;  Laws  of  loiva,  1892,  ch.  28;  Code  of  1897, 
See.  1817. 

For  laws  regulating  investments  by  insurance  companies  see  Laws  of  Iowa, 
1878,  ch.  47;  Laws  of  Iowa,  1886,  ch.  169;  Laws  of  Iowa,  1888,  ch.  94;  Laws 
of  Iowa,  1892,  ch.  30;  Laws  of  Iowa,  1894,  ch.  33;  Laws  of  Iowa,  1900,  ch.  66; 
Laws  of  Iowa,  1906,  ch.  77;  Laws  of  Iowa,  1913,  ch.  145;  Supplemental  Sup- 
plement to  the  Code  of  Iowa,  1915,  Title  IX,  ch.  8,  sec.  1806;  Laws  of  Iowa, 
1917,  ch.  404. 

For  other  regulatory  laws  see  Laws  of  Iowa,  1874,  ch.  2;  Laws  of  Iowa, 
1880,  ch.  211;  Laivs  of  Iowa,  1898,  ch.  46;  Laws  of  Iowa,  1902,  ch.  75;  Laws 
of  Iowa,  1904,  ch.  59;  Laws  of  Iowa,  1906,  ch.  74;  Laws  of  Iowa,  1907,  chs. 
81,  84,  85;  Laws  of  Iowa,  1909,  ch.  113;  Supplemental  Supplement  to  the  Code 
of  Iowa,  1915,  Title  IX,  ch.  6,  sec.  1783-b. 

255  Iowa  Insurance  Beport,  1883,  pp.  61-67;  Iowa  Insurance  Beport,  1884, 
pp.  5-11. 

256  Laws  of  Iowa,  1886,  eh.  65. 

257  Laws  of  Iowa,  1900,  eh.  65. 

25S  Laws  of  Iowa,  1904,  ch.  60;  Laws  of  Iowa,  1906,  chs.  75,  76;  Laws  of 
Iowa,  1907,  ch.  83;  Laws  of  Iowa,  1911,  ch.  18;  Laws  of  Iowa,  1917,  chs.  227, 
413. 

259  Laws  of  Iowa,  1896,  ch.  21. 

260  Laws  of  Iowa,  1898,  ch.  47;  Laws  of  Iowa,  1904,  chs.  61,  62,  63;  Laws  of 
Iowa,  1907,  chs.  86,  87,  88,  89;  Laws  of  Iowa,  1911,  chs.  18,  81,  82;  Supple- 
mental Supplement  to  the  Code  of  Iowa,  1915,  Title  IX,  ch.  9;  Laws  of  Iowa, 
1917,  chs.  113,  193,  379,  431. 

261  Laws  of  Iowa,  1904,  chs.  56,  57,  58. 

262  Laws  of  Iowa,  1906,  eh.  188. 

263  Beport  of  the  Legislative  Insurance  Commission  of  Iowa,  1906,  pp.  9,  10, 

69-88. 

264  Laws  of  Iowa,  1907,  chs.  73,  74,  77,  78,  79;  Laws  of  Iowa,  1911,  chs.  18, 
79,  80,  128. 

265  Laws  of  Iowa,  1913,  ch.  146. 

266  For  a  more  detailed  presentation  of  the  taxation  of  insurance  companies 
in  Iowa  see  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  Chapter  VII. 


342  ECONOMIC  LEGISLATION  IN  IOWA 

267  Code  of  1851,  sees.  455,  464. 

268  Xau's  of  Iowa,  1868,  ch.  138,  sec.  38;  Laws  of  Iowa  (general),  1872,  ch. 
106. 

269  Code  of  1897,  sec.  1333.  See  also  Code  of  1873,  sec.  807;  Laws  of  Iowa, 
1874,  ch,  2. 

270  See  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  166-176. 

271  Laws  of  loiva,  1900,  ch.  43 ;  Laws  of  Iowa,  1902,  ch.  57 ;  Laivs  of  Iowa, 
1906^  ch.  48;  Laws  of  Iowa,  1907,  chs.  56,  57;  Laws  of  Iowa,  1917,  ch.  258. 

CHAPTEE  VIII 

272  Laws  of  the  Territory  of  Wisconsin,  1836,  ch.  7,  pp.  27-34. 

273  United  States  Statutes  at  Large,  Vol.  V,  p.  198. 

274Merritt's  The  Early  History  of  Banking  in  Iowa,  pp.  9-28. 

216  Laws  of  the  Territory  of  Iowa,  1838-1839,  resolution  2,  pp.  515,  516; 
Merritt's  The  Early  History  of  BanTcing  in  Iowa,  pp.  39-43. 

276  Xau's  of  the  Territory  of  Iowa,  1845,  ch.  31;  Knox's  A  History  of  BanTc- 
ing in  the  United  States,  pp.  761-763;  Merritt's  The  Early  History  of  Banking 
in  Iowa,  pp.  1-117;  Miners'  Bank  of  Dubuque  v.  The  United  States,  1  Morris 
482  (Miller's  reprint,  p.  635);  Miners'  Bank  of  Dubuque  v.  United  States,  1 
Green  553. 

277  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  64. 

278  Constitution  of  the  State  of  Iowa,  1846,  Art.  8. 

279  Code  of  1851,  sees.  2731-2734,  p.  378. 

280  Knox's  A  History  of  Banking  in  the  United  States,  pp.  763-766. 

281  Lathrop  's  Some  Iowa  Bank  History  in  the  Iowa  Historical  Record,  Vol. 
Xin,  pp.  54-65. 

282  Constitution  of  the  State  of  Iowa,  1857,  Art.  8,  sees.  4—12. 

283  Shambaugh's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
II,  p.  45. 

284  Shambaugh's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
II,  pp.  125-128. 

285  Laws  of  Iowa,  1858,  ch.  114. 

286  Laws  of  Iowa,  1858,  ch.  87. 

287  Laws  of  Iowa,  1858,  ch.  146;  Shambaugh's  Messages  and  Proclamations 
of  the  Governors  of  Iowa,  Vol.  II,  pp.  204,  205. 

288  Sherman's  The  State  Bank  of  Iowa  in  The  Annals  of  Iowa  (Third  Se- 
ries), Vol.  V,  p.  98. 


NOTES  AND  REFERENCES  343 

289  The  following  men  were  named  as  commissionera  by  the  statute :  C.  H. 
Booth,  E.  H.  Harrison,  Ezekiel  Clark,  J.  W.  Button,  W.  J.  Gatling,  C.  W. 
Slagle,  Elihu  Baker,  W.  S.  Dart,  L.  W.  Babbitt,  Edward  T.  Edgington.— 
Laws  of  Iowa,  1858,  ch.  87,  sec.  51. 

Branches  were  established  and  the  original  Board  of  Directors  was  made  up 
as  follows:  W.  T.  Smith  of  the  Oskaloosa  Branch,  Samuel  F.  Miller  of  the 
Keokuk  Branch,  P.  M.  Cassady  of  the  Des  Moines  Branch,  Samuel  J.  Kirkwood 
of  the  Iowa  City  Branch,  Chester  Weed  of  the  Muscatine  Branch,  Richard 
Bonson  of  the  DuBuque  Branch,  Timothy  Whiting  of  the  Mount  Pleasant 
Branch,  Hiram  Price  of  the  Davenport  Branch. 

On  the  part  of  the  State  the  General  Assembly  appointed  Hoyt  Sherman  and 
Benjamin  Lake. —  Record  of  the  Commissioners,  p.  22. 

The  original  records  of  the  Board  of  Commissioners  and  of  the  Board  of 
Directors  of  the  State  Bank  of  Iowa  are  in  the  possession  of  The  State  His- 
torical Society  of  Iowa. 

The  permanent  oflBcers  of  the  Board  were:  President,  Chester  Weed;  Vice- 
President,  W.  T.  Smith;  Secretary,  Elihu  Baker.  S.  J.  Kirkwood  and  Hiram 
Price,  with  the  Vice-President,  formed  the  Executive  Committee. —  Record  of 
the  Commissioners,  pp.  32,  33. 

^^oLaivs  of  Iowa,  1858,  ch.  87. 

291  Records  of  the  Commissioners,  pp.  2,  6. 

292  Record  of  the  Board  of  Directors,  pp.  22-33. 

293  Laws  of  Iowa,  1862,  ch.  17 ;  Laws  of  loiva,  1864,  chs.  43,  53. 

^04 Record  of  the  Board  of  Directors,  pp.  207,  208;  Sherman's  The  State 
Bank  of  Iowa  in  The  Annals  of  Iowa  (Third  Series),  Vol.  V,  pp.  105-107. 

295  Record  of  the  Board  of  Directors,  pp.  292-295,  303-307. 

296  Sherman's  The  State  BanJc  of  Iowa  in  The  Annals  of  Iowa  (Third  Se- 
ries), Vol.  V,  p.  116. 

297  Knox's  A  History  of  Banking  in  the  United  States,  p.  770;  Laws  of  Iowa, 
1870,  eh.  70. 

2SS  Laws  of  Iowa,  1858,  chs.  114,  146;  Shambaugh's  Messages  and  Proclama- 
tions of  the  Governors  of  Iowa,  Vol.  II,  pp.  204,  205. 

299  Shambaugh's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 

n,  p.  168. 

300  Senate  Journal,  1860,  pp.  677-679. 

301  Laws  of  Iowa,  1870,  ch.  25. 

302  Laws  of  Iowa,  1847,  ch.  81,  sec.  7;  Laws  of  Iowa,  1870,  ch.  172,  sees.  2, 
11;  Census  of  Iowa,  1905,  pp.  c-ci;  Report  of  the  Auditor  of  State,  1873,  pp. 
60,  61,  101-104;  Report  of  the  Auditor  of  State,  1875,  pp.  14,  87-90. 


344  ECONOMIC  LEGISLATION  IN  IOWA 

S03  Code  of  1873,  sees.  1570-1576. 

304  Laws  of  Iowa,  1880,  ehs.  153,  208. 

305  Laws  of  Iowa,  1886,  ch.  72. 

306  Laws  of  Iowa,  1890,  ch.  50 ;  Laws  of  Iowa,  1894,  chs.  29,  30. 

307  Code  of  1897,  sees.  1861-1889. 

308  Laws  of  Iowa,  1902,  ch.  76 ;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  see.  1870. 

309Z,au's  of  Iowa,  1904,  ch.  64;  Laws  of  Iowa,  1906,  chs.  80,  81;  Laws  of 
Iowa,  1909,  ch.  115;  Laws  of  Iowa,  1911,  ch.  83;  Supplemental  Supplement  to 
the  Code  of  Iowa,  1915,  see.  1875;  Laws  of  Iowa,  1917,  ch.  189. 

310  Laws  of  Iowa,  1906,  chs.  9,  65,  79;  Laws  of  Iowa,  1907,  chs.  90,  91,  92; 
Laws  of  Iowa,  1909,  chs.  114,  116;  Laws  of  Iowa,  1911,  ch.  84;  Laws  of  Iowa, 
1913,  chs.  151,  152;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees. 
1889-d,  1889-0.  The  procedure  in  reducing  the  capital  stock  of  banks  was  set 
forth  by  ch.  218,  Laws  of  Iowa,  1917. 

311  Laws  of  Iowa  (public),  1874,  ch.  60. 

312  Keyes  's  A  History  of  Savings  Banks  in  the  United  States,  Vol.  II,  pp. 
451-454. 

313  Laws  of  Iowa,  1890,  ch.  50;  Laws  of  Iowa,  1894,  ch.  30;  Laws  of  Iowa, 
1904,  ch.  64;  Laws  of  Iowa,  1906,  chs.  80,  81;  Laws  of  Iowa,  1909,  ch.  115; 
Laws  of  Iowa,  1911,  ch.  83;  Supplemental  Supplement  to  the  Code  of  Iowa, 
1915,  sec.  1875. 

314  Laws  of  Iowa,  1894,  ch.  29. 

315  Code  of  1897,  sec.  1860;  Supplemental  Supplement  to  the  Code  of  Iowa, 
1915,  sec.  1860;  Laws  of  Iowa,  1917,  ch.  189. 

316  Lows  of  Iowa,  1900,  ch.  67;  Laws  of  Iowa,  1902,  ch.  167. 

^n  Laws  of  Iowa,  1902,  ch.  76;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  sec.  1870;  Laws  of  Iowa,  1906,  ch.  78;  Laws  of  Iowa,  1913,  ch.  149; 
Laws  of  Iowa,  1888,  ch.  89;  Laws  of  Iowa,  1907,  ch.  91;  Laws  of  Iowa,  1913, 
ch.  150;  Laws  of  Iowa,  1906,  ch.  79;  Laws  of  Iowa,  1904,  ch.  2,  sees.  5,  6; 
Laws  of  Iowa,  1913,  ch.  152;  Supplemental  Supplement  to  the  Code  of  Iowa, 
1915,  sees.  1889-d,  1889-0. 

Por  other  legislation  pertaining  to  savings  banks  see  Laws  of  Iowa,  1880, 
^hs.  153,  208;  Code  of  1897,  sees.  1840-1860,  1868-1889;  Laws  of  Iowa,  1906, 
ch.  65;  Laws  of  Iowa,  1907,  chs.  90,  92;  Laws  of  Iowa,  1909,  ch.  116;  Laws  of 
Iowa,  1911,  ch.  84;  Laws  of  Iowa,  1917,  chs.  238,  357,  364. 

318  Code  of  1897,  sec.  1889. 

810  Lows  of  Iowa,  1904,  ch.  65;  Laws  of  Iowa,  1906,  ch.  81;  Laws  of  Iowa, 


NOTES  AND  REFERENCES  345 

1909,  ch.  115;  Laws  of  Iowa,  1911,  chs.  83,  84;  Supplemental  Supplement  to 
the  Code  of  Iowa,  1915,  sec.  1875, 

820  Eeport  of  the  Twenty-first  Annual  Convention  Iowa  Banlcers'  Association, 
1907,  p.  52. 

321  Laws  of  Iowa,  1913,  ch.  152. 

322  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  1889-(i,  1889-0. 

323  Laws  of  Iowa,  1917,  ch.  40. 

324  A  more  detailed  account  of  the  taxation  of  banks  is  given  in  Brindley's 
History  of  Taxation  in  Iowa,  Vol.  I,  pp.  145-163. 

32B  Code  of  1851,  sees.  456,  466. 

32ei,ows  of  Iowa,  1858,  ch.  87,  see.  36;  ch.  114,  sec.  11. 

327  Laws  of  Iowa,  1866,  ch.  108.    See  also  Revision  of  1860,  sec.  725. 

328  Hubbard  et  al.  v.  The  Board  of  Supervisors  of  Johnson  County,  23  Iowa 
130;  Laws  of  Iowa,  1868,  ch.  153. 

329  Horseman  v.  Younkin  et  al.,  27  Iowa  350 ;  First  National  Bank  of  Iowa 
City  V.  Hershire,  Treasurer,  31  Iowa  18;  Hershire,  treasurer,  etc.,  v.  First 
National  Bank  of  Iowa  City,  35  Iowa  272. 

330  Laws  of  Iowa,  1870,  chs.  25,  70;  Code  of  1873,  sec.  812. 

331  Lows  of  Iowa  (public),  1874,  ch.  63. 

332  Laws  of  Iowa  (public),  1874,  ch.  60,  sec.  28. 

333  Laws  of  Iowa,  1890,  ch.  39. 

334  The  Primghar  State  Bank,  Appellant,  v.  Henry  Eerick,  Treasurer,  et  al., 
96  Iowa  238. 

335  Code  of  1897,  sees.  1321,  1322. 

336  Lows  of  Iowa,  1906,  ch.  50;  Laws  of  Iowa,  1911,  ch.  63. 
837  Laws  of  Iowa,  1913,  ch.  114. 

CHAPTER  IX 
338  Biennial  Eeport  of  the  Auditor  of  State,  1897,  pp.  13-20. 
339 Laws  of  Iowa  (public),  1872,  chs.  30,  101. 

340  Laws  of  Iowa,  1896,  ch.  85. 

341  Code  of  1897,  sees.  1890-1920 ;  Laws  of  Iowa,  1898,  ch.  48 ;  Laws  of  Iowa, 
1900,  ch.  69. 

342  Laws  of  Iowa,  1900,  eh.  69. 

343  Laws  of  Iowa,  1902,  ch.  77. 


346  ECONOMIC  LEGISLATION  IN  IOWA 

344  Laws  of  Iowa,  1911,  ch.  73. 

345  Laws  of  Iowa,  1876,  eh.  163. 

346  Laws  of  Iowa,  1896,  ch.  85,  sec.  33. 

347  Code  of  1897,  sec.  1326. 

348  iait-s  of  Iowa,  1913,  ch.  119. 

^i^  Biennial  Eeport  of  the  Auditor  of  State,  1897,  pp.  13-20,  161-257;  Bi- 
ennial Eeport  of  the  Auditor  of  State,  1901,  p.  xi. 

350  Biennial  Eeport  of  the  Auditor  of  State,  1914,  p.  438. 
The  following  table  compiled  from  the  Auditor's  reports  indicates  the  almost 
steady  decrease  in  the  number  of  building  and  loan  associations: 


Year 

Number 

Year 

Number 

Year 

Number 

1897 

117 

1904 

60 

1912 

47 

1898 

108 

1905 

57 

1913 

49 

1899 

101 

1907 

48 

1914 

50 

1900 

86 

1909 

49 

1902 

72 

1911 

47 

CHAPTER  X 

351  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  470,  471. 

352  Eevised  Statutes  of  the  Territory  of  Iowa,  1842-1843,  ch.  160. 

353  Code  of  1851,  sees.  937-942,  2747,  2748.  See  also  Laws  of  the  Territory 
of  Iowa,  1845-1846,  ch.  22. 

354  Laws  of  Iowa,  1854-1855,  chs.  5,  26,  34,  joint  resolution  33 ;  Laws  of 
Iowa,  1856-1857,  ch.  165,  joint  resolution  28;  Laws  of  Iowa,  1858,  ch.  110; 
Laws  of  Iowa  (special),  1860,  ch.  108. 

355  Laws  of  Iowa,  1862,  eh.  82. 

356  Laii-s  of  Iowa,  1864,  ch.  56;  Laws  of  Iowa  (general),  1872,  ch.  129. 

^57  Laws  of  Iowa,  1868,  eh.  195;  Laics  of  Iowa  (general),  1872,  ch.  56; 
Code  of  1873,  sees.  2037-2074,  3802,  3803;  Laivs  of  Iowa,  1876,  chs.  52,  89; 
Laws  of  Iowa,  1878,  ch.  42;  Laws  of  Iowa,  1880,  eh.  21;  Code  of  1897,  sees. 
3009-3036,  5044;  Laws  of  Iowa,  1902,  ch.  129;  Laws  of  Iowa,  1906,  ch.  147. 

358  Laws  of  Iowa,  1911,  ch.  154. 

i^^  Laws  of  Iowa,  1913,  ch.  266;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  Title  XV,  ch.  1,  pp.  280-282 ;  Laws  of  Iowa,  1917,  chs.  57,  80,  251. 

360  Lajis  of  the  Territory  of  Iowa,  1838-1839,  p.  457;  Eevised  Statutes  of 
the  Territory  of  Iowa,  1842-1843,  eh.  49,  sec.  37,  p.  191;  Code  of  1851,  sees. 
2725-2728,  2747-2752;  Laws  of  Iowa,  1858,  ch.  140;  Laios  of  Iowa,  1868,  eh. 
195;  Laws  of  Iowa,  1870,  ch.  156;  Laws  of  loua,  1880,  chs.  39,  137;  Laws  of 
Iowa,  1882,  eh.  170;  Laws  of  Iowa,  1886,  eh.  50. 


NOTES  AND  REFERENCES  347 

361  Laws  of  Iowa,  1886,  ch.  52,  sees.  1-10, 

862  Laws  of  Iowa,  1886,  ch.  52,  sees.  11-19. 

363  Laws  of  Iowa,  1886,  ch.  174;  Laios  of  Iowa,  1888,  chs.  79,  80,  81;  con- 
current resolution  1,  p.  239. 

^QiLaws  of  loiva,  1892,  ch.  50.  See  also  Laws  of  Iowa,  1888,  ch.  98,  and 
Laws  of  Iowa,  1892,  joint  resolution  14,  p.  185. 

365  Laws  of  Iowa,  1894,  chs.  45,  46,  47;  Laws  of  Iowa,  1896,  eh.  101;  Laws 
of  Iowa,  1898,  ch.  52. 

366  Code  of  1897,  sees.  2515-2528,  4976-4999. 

367  Laws  of  Iowa,  1900,  ch.  85.    See  also  Laws  of  loiva,  1904,  ch.  88. 

368  Laws  of  Iowa,  1906,  eh.  166. 

369  Laws  of  Iowa,  1906,  eh.  107. 

sfo  Laws  of  Iowa,  1906,  chs.  167,  168,  171,  concurrent  resolutions  6,  7;  see 
also  Laws  of  Iowa,  1902,  ch.  102 ;  Laws  of  Iowa,  1917,  ch.  377. 

3T1  Laws  of  Iowa,  1907,  chs.  131,  132,  176,  177,  178,  179,  180,  182,  189,  190, 
concurrent  resolution  6,  p.  292. 

372  Laws  of  Iowa,  1907,  ch.  189. 

373  Laivs  of  Iowa,  1909,  chs.  148,  221,  222. 

3"! 4  Laws  of  Iowa,  1911.  For  the  linseed  oil  law  see  eh.  110;  for  the  oil  of 
turpentine  law  see  eh.  Ill;  for  the  amendment  relating  to  the  Dairy  and  Food 
Commissioner  see  ch.  113. 

375  Laws  of  Iowa,  1911,  chs.  174,  175,  176,  177,  180,  181. 

376  iau's  of  Iowa,  1913.  For  the  cold  storage  law  see  ch.  199;  for  the  cal- 
cium carbide  law  see  ch.  200;  for  the  sanitation  law  see  ch.  201;  for  the  com- 
mercial fertilizer  law  see  eh.  202;  for  the  fraudulent  advertising  law  see  ch. 
309;  and  for  the  amendment  to  the  misbranding  law  see  ch.  307. 

377  Laws  of  Iowa,  1913,  ch.  199. 

378  Laws  of  Iowa,  1913,  ch.  200. 

379  Laws  of  Iowa,  1913,  ch.  201. 

380  Laws  of  Iowa,  1913,  ch.  202. 

3S1  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  2515,  2515-f; 
Laws  of  Iowa,  1917,  chs.  80,  133,  190,  385,  406. 

382  Twenty-seventh  Annual  Meport  of  the  State  Dairy  Commissioner,  1913, 
pp.  1-10. 

3S3  Laws  of  Iowa  (general),  1872,  ch.  47.     See  also  Code  of  1873,  sec.  3901. 
384  Laws  of  Iowa,  1878,  eh.  172. 


348  ECONOMIC  LEGISLATION  IN  IOWA 

385  Laws  of  Iowa,  1884,  ch.  185. 

386  Laws  of  Iowa,  1886,  ch.  149 ;  Laws  of  Iowa,  1888,  ch.  82,  sec.  8-b ;  Laws 
of  Iowa,  1892,  ch.  52 ;  Laws  of  Iowa,  1896,  chs.  92,  93,  94. 

3S7  Code  of  1897,  sees.  2503-2510;  Laws  of  Iowa,  1898,  chs.  61,  62;  Laws  of 
Iowa,  1900,  ch.  83;  Laws  of  Iowa,  1902,  chs.  101,  168. 

388  Laivs  of  Iowa,  1904,  ch.  87. 

38fl  Laws  of  Iowa,  1906,  chs.  105,  106,  169. 

390  Laws  of  Iowa,  1909,  ch.  147;  Laws  of  Iowa,  1911,  chs.  108,  109;  Supple- 
mental Supplement  to  the  Code  of  Iowa,  1915,  Title  XII,  ch.  11. 

soiMechem's  Elements  of  the  Law  of  Partnership,  pp.  2,  3. 

392  Laios  of  the  Territory  of  Iowa,  1838-1839,  pp.  361-364. 

393  Laws  of  the  Territory  of  Wisconsin,  1837-1838,  ch.  47. 

394  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  361-364. 

395  Laws  of  the  Territory  of  Iowa,  1845-1846,  ch.  30. 

396  Laws  of  Iowa,  1858,  ch.  98. 

397  Laws  of  Iowa,  1862,  ch.  128 ;  Laws  of  Iowa,  1882,  ch.  8 ;  Laws  of  Iowa, 
1904,  ch.  2,  sec.  9.  See  also  Code  of  1873,  sees.  2147-2170;  Code  of  1897,  sees. 
3106-3121. 

398  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  64. 

399  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  381-385. 

400  Bevised  Statutes  of  the  Territory  of  Iowa,  1842-1843,  ch.  106. 

ioiCode  of  1851,  sees.  947-965;  Laws  of  Iowa,  1852-1853,  ch.  108,  sec.  3; 
Laws  of  Iowa,  1858,  ch.  79;  Laws  of  Iowa,  1862,  ch.  116;  Code  of  1873,  sees. 
2082-2103;  Laws  of  Iowa,  1876,  ch.  81;  Laws  of  Iowa,  1880,  eh.  31;  Laws  of 
Iowa,  1884,  ch.  183;  Laws  of  Iowa,  1888,  ch.  90;  Laws  of  Iowa,  1890,  ch.  45; 
Code  of  1897,  sees.  3043-3060. 

402  Ebersole  's  Encyclopedia  of  lotva  Law,  Third  Supplement,  Appendix,  p.  1. 

403  Laws  of  Iowa,  1902,  ch.  130.  See  also  Laws  of  Iowa,  1906,  chs.  149,  150; 
Supplemental  Supplement  to  the  Code  of  lotva,  1915,  sec.  3060-al20.  The  divi- 
sions of  the  law  are  as  follows: 

ARTICLE  SECTIONS 

I.  Form   and   Interpretation 1-  23. 

II.  Consideration    24-  29. 

m.  Negotiation    30-  50. 

IV.  Eights  of  holder 51-  59. 

V.  Liability  of  parties 60-  69. 

VI.  Presentment  for  payment 70-  88. 


NOTES  AND  REFERENCES  349 

VII,  Notice  of  dishonor 89-118. 

VIII.  Discharge    119-125. 

IX.  Bills  of  Exchange  —  form  and  interpretation 126-131. 

XIII.  Acceptance  of  bills  for  honor 161-170. 

XI.  Presentment  of  bills  for  acceptance 143-151. 

XXL  Protest  of  bills  of  exchange 152-160. 

XIII.  Acceptance  of  bills  for  honor 161-170. 

XrV.  Payment  of  bills  for  honor 171-177. 

XV,  Bills  in  a  set 178-183. 

XVI.  Promissory  notes  and  checks 184r-189. 

XVII.  General  provisions  —  statutes  repealed  —  days  of  grace 190-198. 

404  Tompkins 's  The  Law  of  Commercial  Paper,  p.  268. 

^05  Laws  of  Iowa,  1862,  ch.  84;  Laws  of  Iowa,  1864,  ch.  120. 

406  Laws  of  Iowa,  1886,  ch.  165.     See  also  Code  of  1873,  sees.  2171-2184. 

^07  Laws  of  Iowa,  1892,  ch,  44;  Laws  of  Iowa,  1894,  ch,  48;  Code  of  1897, 
sees.  3122-3129. 

408  Laws  of  Iowa,  1907,  ch,  160. 

409  Laws  of  Iowa,  1907,  ch.  160,  sec.  56. 

410  Laws  of  Iowa,  1911,  ch.  155. 

411  Tompkins 's  The  Law  of  Commercial  Paper,  p.  275, 

412  Report  of  the  American  Bar  Association,  Vol.  XXXIX,  1914,  pp.  1085- 
1091. 

413  Ames's  Uniform  Commercial  Legislation  in  The  Green  Bag,  Vol.  XXIII, 
p.  623. 

414  Code  of  1851,  sees.  2750,  2751. 

415  Laws  of  Iowa,  1892,  ch.  36. 

416  Laws  of  Iowa,  1894,  ch.  79. 

417  ifltt's  of  Iowa,  1911,  ch.  156;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  sec.  2515-f. 

418  Ebersole's  Encyclopedia  of  Iowa  Law,  p.  668." 

419  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  7,  8, 

^^oLaws  of  the  Territory  of  Iowa,  1838-1839,  pp,  327-329;  Laws  of  the  Ter- 
ritory of  Iowa,  1839-1840,  ch,  55;  Revised  Statutes  of  the  Territory  of  Iowa, 
1842-1843,  ch,  92, 

421  Code  of  1851,  sees.  981-1010. 

422  Laws  of  Iowa,  1856-1857,  ch,  220;  Laws  of  Iowa,  1858,  eh,  39;  Revision 
of  1860,  ch,  79,  sees,  1845-1873. 


350  ECONOMIC  LEGISLATION  IN  IOWA 

423 iait's  of  Iowa,  1862,  ch.  Ill;  Lmvs  of  Iowa,  1870,  ch.  140;  Laws  of  Iowa 
(general),  1872,  ch.  12;  Laws  of  Iowa  (public),  1874,  chs.  44,  49;  Code  of 
1873,  sees.  2129-2146. 

i^iLaws  of  Iowa,  1876,  ch.  100;  Laws  of  Iowa,  1884,  ch.  179;  Laws  of  Iowa, 
1890,  ch.  47;  Laws  of  Iowa,  1894,  ch.  16;  Code  of  1897,  sees.  3088-3105,  3447; 
Laws  of  Iowa,  1913,  chs.  155,  267;  Suppleme7ital  Supplement  to  the  Code  of 
Iowa,  1915,  sec.  3094. 

425  See  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  10,  11. 

426  Downey's  History  of  Labor  Legislation  in  Iowa,  p.  11. 

427  Ebersole's  Encyclopedia  of  Iowa  Law,  p.  387. 

428  Code  of  1851,  sees.  977,  978. 

429  Laws  of  Iowa,  1856-1857,  ch.  254.  See  also  Laws  of  Iowa,  1858,  ch.  112; 
Code  of  1873,  sees.  2115-2128. 

iso  Laws  of  Iowa,  1876,  ch.  14;  Laws  of  Iowa,  1884,  ch.  124;  Laws  of  Iowa, 
1886,  ch.  115;  Laws  of  Iowa,  1890,  ch.  48;  Laws  of  Iowa,  1894,  ch.  93;  Code  of 
1897,  sees.  3071-3087. 

431  Laws  of  Iowa,  1906,  ch.  148. 

432ioifs  of  the  Territory  of  Iowa,  1838-1839,  pp.  276,  277;  Bevised  Statutes 
of  the  Territory  of  Iowa,  1842-1843,  eh.  81. 

issCode  of  1851,  sees.  943-946;  Laws  of  Iowa,  1852-1853,  ch.  37. 

434  La«;s  of  Iowa,  1890,  ch.  40;  Laws  of  Iowa,  1896,  ch.  90;  Code  of  1897, 
sees.  3037-3042;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  see. 
3041-a. 

435  Code  of  1851,  sees.  966-969;  Code  of  1897,  sees.  3061-3063. 
i36Code  of  1851,  sees.  970-973;  Code  of  1897,  sees.  3064^3067. 

^^T  Laws  of  Iowa,  1884,  ch.  93;  Laws  of  Iowa,  1886,  ch.  165;  Laivs  of  Iowa, 
1888,  chs.  28,  78;  Laws  of  Iowa,  1890,  ch.  28;  Laws  of  Iowa,  1896,  ch.  22; 
Laws  of  Iowa,  1907,  chs.  187,  188;  Laws  of  Iowa,  1909,  chs.  222,  225;  Laws  of 
Iowa,  1913,  chs.  295,  310. 

^s»  Laws  of  Iowa,  1911^  eh.  150;  Stipplemental  Supplement  to  the  Code  of 
Iowa,  1915,  see.  2911-a,  2911-b;  Laws  of  Iowa,  1917,  ch.  64. 

430  Lows  of  Iowa  (adjourned  session),  1873,  ch.  2;  Laws  of  the  Territory  of 
Iowa,  1843-1844,  ch.  25;  Laws  of  Iowa  (extra  session),  1848,  ch.  28;  Code  of 
1851,  sees.  510-513;  Laws  of  Iowa,  1852-1853,  ch.  69,  see.  17;  Laws  of  Iowa 
(public),  1874,  ch.  62;  Code  of  1873,  sees.  906,  907;  Laws  of  Iowa,  1898,  ch. 
32;  Laws  of  Iowa,  1904,  ch,  48;  Laws  of  Iowa,  1907,  ch.  59. 

Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  343-346;  Laws  of  the  Terri- 
tory of  Iowa,  1839-1840,  eh.  83;  Revised  Statutes  of  the  Territory  of  Iowa, 
1842-1843,  chs.  19,  102;  Laws  of  Iowa  (extra  session),  1848,  ch.  9. 


NOTES  AND  REFERENCES  351 

no  Laws  of  loiva,  1855,  memorial  6;  Laws  of  Iowa,  1856-1857,  joint  resolu- 
tion 13;  Laws  of  Iowa,  1872,  joint  resolution  15;  Laws  of  Iowa,  1882,  joint 
resolution  10;  Laws  of  Iowa,  1886,  joint  resolution  2;  Laivs  of  Iowa,  1890, 
joint  resolution  2',  Laws  of  Iowa,  1894,  joint  resolution  1. 

Laws  of  Iowa,  1856-1857,  joint  resolution  14;  Laws  of  Iowa,  1855,  joint 
resolution  32 ;  Latcs  of  Iowa,  1874,  concurrent  resolution  1 ;  Laws  of  Iowa, 
1876,  joint  resolution  7;  Laws  of  Iowa,  1880,  joint  resolution  12;  Laws  of 
Iowa,  1882,  joint  resolutions  3,  9. 

441  Laics  of  loxca,  1856-1857,  joint  resolutions  4,  8;  Laivs  of  Iowa,  1855,  joint 
resolution  31;  Laws  of  Iowa,  1874,  joint  resolutions  13,  14,  19,  concurrent 
resolution  2;  Laws  of  Iowa,  1878,  joint  resolution  2;  Laws  of  loica,  1880,  joint 
resolution  2;  Laws  of  Iowa,  1884,  joint  resolution  4;  Laws  of  Iowa,  1894,  joint 
resolution  7;  Laws  of  Iowa,  1902,  concurrent  resolution  14;  Laws  of  Iowa, 
1913,  ch.  334. 

Laws  of  the  Territory  of  Iowa,  1839-1840,  joint  resolutions  13,  14,  16,  23; 
Laivs  of  the  Territory  of  Iowa,  1843-1844,  joint  resolutions  6,  8,  9,  13;  Laivs  of 
the  Territory  of  Iowa,  1845,  joint  resolutions  3,  4;  Laws  of  the  Territory  of 
loiva,  1845-1846,  joint  resolutions  7,  9,  11;  Laws  of  Iowa,  1846-1847,  joint 
resolutions  3,  9,  10,  11,  13,  15,  16,  18;  Laivs  of  Iowa  (extra  session),  1848, 
joint  resolutions  4,  10,  12,  14,  23;  Laws  of  Iowa,  1848-1849,  joint  resolutions 
4,  6,  10,  18,  19,  20,  21,  22,  23,  27,  29,  31,  33,  34,  37,  memorial  5;  Laws  of  Iowa, 
1850-1851,  joint  resolutions  12,  28,  34;  Laws  of  Iowa,  1852-1853,  joint  resolu- 
tions 13,  15,  memorial  2;  Laws  of  Iowa,  1855,  joint  resolutions  2,  5,  6,  7,  8,  9, 
10,  12,  13,  14,  15,  17,  19,  21,  22,  23,  26,  27,  29,  30,  34,  37,  memorials  1, 
2,  3,  4,  7;  Laws  of  Iowa  (extra  session),  1856,  joint  resolution  5;  Laws  of 
Iowa,  1862,  joint  resolutions  8,  12;  Laws  of  Iowa,  1864,  joint  resolution  p.  186; 
Laivs  of  Iowa,  1868,  joint  resolution  18;  Laws  of  loiva,  1870,  joint  resolutions 
7,  8,  12,  18. 

CHAPTER  XI 

442  For  a  comprehensive  study  of  labor  legislation  in  Iowa  up  to  1909  see 
Downey's  History  of  Labor  Legislation  in  Iowa. 

443  See  above  pp.  243-246. 

444  Laws  of  Iowa,  1890,  ch.  48;  Code  of  1851,  sees.  1490,  1901;  Code  of 
1873,  sees.  2211,  2240,  3074;  Code  of  1897,  sees.  3162,  3191,  4013;  Supple- 
mental Supplement  to  the  Code  of  Iowa,  1915,  sec.  3041-a. 

n^  Laws  of  Iowa,  1888,  ch.  55;  Laws  of  Iowa,  1894,  ch.  98;  Laws  of  Iowa, 
1900,  ch.  81;  Laws  of  Iowa,  1904,  ch.  124;  Laivs  of  Iowa,  1913,  ch.  249; 
Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  2110-bl,  2110-b2. 

446  Downey's  History  of  Labor  Legislation  in  Iowa,  p.  18. 

447  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  365-369. 

448  Laws  of  the  Territory  of  Iowa,  1840-1841,  ch.  71. 


352  ECONOMIC  LEGISLATION  IN  IOWA 

*4»  Laws  of  the  Territory  of  Iowa,  1845-1846,  ch.  20. 

450  Laws  of  Iowa,  1848-1849,  ch.  70, 

451  Laws  of  Iowa,  1852-1853,  ch.  14.  See  also  Journal  of  the  Senate,  1854- 
1855,  Appendix,  pp.  23-25. 

452  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sec.  5718-all;  Laws 
of  loiva,  1917,  ch.  328. 

For  other  acts  pertaining  to  the  leasing  of  convict  labor  see  Laws  of  Iowa 
(public),  1872,  ch.  43;  Laws  of  Iowa  (local),  1874,  eh.  35;  Laws  of  Iowa, 
1876,  ch.  97;  Laws  of  Iowa,  1878,  ch.  110;  Laws  of  Iowa,  1880,  ch.  149;  Laws 
of  Iowa,  1886,  ch.  153;  Laws  of  Iowa,  1900,  ch.  138. 

For  acts  pertaining  to  the  working  of  convicts  on  the  roads  and  in  stone 
quarries  see  Laws  of  Iowa,  1876,  ch.  40,  see.  7;  Laws  of  Iowa,  1878,  ch.  187; 
Laws  of  Iowa,  1880,  ch.  154;  Laws  of  Iowa,  1894,  ch.  20;  Code  of  1897,  sees. 
5707,  5708;  Laws  of  Iowa,  1900,  ch.  138;  Laws  of  Iowa,  1902,  ch.  155;  Laws 
of  Iowa,  1907,  ch.  192,  see.  7,  ch.  194;  Laws  of  Iowa,  1913,  chs.  134,  318. 

453  Sixteenth  Biermial  Beport  of  the  State  Mine  Inspectors,  1912,  p.  101. 

454  Iowa  Geological  Survey,  Vol.  XXIV,  p.  3. 

455  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  329. 

456  Downey 's  History  of  Lahor  Legislation  in  Iowa,  pp.  33,  35. 

^^T  Laws  of  loiva  (general),  1872,  ch.  44;  Laws  of  Iowa  (general),  1874, 
eh.  31. 

458  Laws  of  Iowa,  1880,  ch.  202. 

459  Laws  of  Iowa,  1884,  ch.  21. 

The  time  for  making  the  report  by  the  mine  inspector  was  changed  by  the 
Laws  of  Iowa,  1882,  ch.  175. 

460  Downey's  History  of  Labor  Legislation  in  Iowa,  p.  38. 

461  Laws  of  Iowa,  1886,  ch.  140. 

A  change  was  made  in  the  method  of  filing  charges  for  removal  of  the  State 
mine  inspector  by  Laws  of  Iowa,  1886,  ch.  43. 

462  Laws  of  Iowa,  1888,  ch.  52. 

463  La«;s  of  Iowa,  1900,  ch.  82;  Laws  of  Iowa,  1902,  ch.  98;  Laws  of  Iowa, 
1904,  ch.  86;  Laws  of  Iowa,  1911,  ch.  106,  sec.  43. 

i^iCode  of  1897,  sec.  2483;  Laws  of  Iowa,  1900,  ch.  79;  Laws  of  Iowa, 
1907,  ch.  129;  Laws  of  Iowa,  1911,  ch.  107. 

Code  of  1897,  sec.  2478;  Laws  of  Iowa,  1911,  ch.  106,  see.  1;  Laws  of  Iowa, 
1913,  ch.  197;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sec.  2478; 
Laws  of  Iowa,  1911,  ch.  106,  sec.  2. 

465  Laws  of  Iowa,  1902,  chs.  99,  100;  Laws  of  Iowa,  1906,  ch.  103,  sec.  6; 
Laws  of  Iowa,  1913,  ch.  198,  sec.  6. 


NOTES  AND  REFERENCES  353 

*8«  Laws  of  Iowa,  1890,  joint  resolution  and  memorial,  p.  185 ;  Laws  of 
Iowa,  1896,  chs.  92,  93;  Latvs  of  Iowa,  1898,  chs.  59,  60;  Laws  of  Iowa,  1906, 
ch.  3,  sec.  3,  ch.  5;  Laws  of  Iowa,  1907,  ch.  130;  Laivs  of  Iowa,  1909,  ch.  146. 
See  also  Code  of  1897,  sees.  2478-2496. 

i^T  Laws  of  Iowa,  1890,  ch.  47;  Laws  of  Iowa,  1888,  chs.  53,  54,  55,  57; 
Laws  of  Iowa,  1894,  ch.  98;  Laws  of  Iowa,  1900,  chs.  80,  81. 

468  Laws  of  Iowa,  1911,  ch.  106. 

469  A  more  elaborate  system  of  reports  is  demanded  of  those  employers  who 
choose  to  come  under  the  Workmen's  Compensation  Law  of  1913. —  See  Laws 
of  Iowa,  1913,  ch.  147,  sec.  37. 

470  A  few  slight  changes  were  made  in  the  law  of  1911  by  the  Thirty-sixth 
General  Assembly. —  See  Supplemental  Supplement  to  the  Code  of  Iowa,  1915, 
sees.  2489-alO,  2489-al2. 

47iI,aM;s  of  Iowa,  1913,  ch.  198. 

472  Downey 's  History  of  Labor  Legislation  in  Iowa,  pp.  76,  77, 

i^sCode  of  1851,  sec.  1010;  Laws  of  Iowa  (public),  1872,  ch.  12;  Code  of 
1873,  see.  2130;  Laws  of  Iowa,  1876,  ch.  100,  sec.  5;  Code  of  1897,  sees.  3089, 
3091, 

4Ti4  Laws  of  Iowa,  1890,  ch.  18 ;  Laws  of  Iowa,  1892,  ch.  23 ;  Laws  of  Iowa, 
1898,  chs.  50,  51. 

475  Laws  of  Iowa,  1907,  ch.  109. 

476  Laws  of  Iowa,  1907,  ch.  103. 

*77  Laws  of  Iowa,  1907,  ch.  110;  Laws  of  Iowa,  1909,  ch.  126;  Laws  of  Iowa, 
1911,  eh.  93;  Laws  of  Iowa,  1913,  ch.  167;  Supplemental  Supplement  to  the 
Code  of  Iowa,  1915,  sees.  2110-bl,  2110-b2. 

478  Laws  of  Iowa,  1907,  ch.  37 ;  Laws  of  Iowa,  1909,  chs.  51,  52 ;  Laws  of 
Iowa,  1911,  ch.  38. 

479  Laws  of  Iowa,  1884,  ch.  132;  Laws  of  Iowa,  1894,  ch.  131,  sec.  3;  Laws  of 
Iowa,  1896,  ch.  86,  sec.  1;  Laws  of  Iowa,  1904,  ch.  85;  Laws  of  Iowa,  1909,  ch, 
144;  Laws  of  Iowa,  1913,  ch.  196,  sec.  3. 

*»o  Laws  of  lotca,  1884,  ch.  132,  sec.  3;  Laws  of  Iowa,  1896,  ch.  86,  sec.  1; 
Latvs  of  Iowa,  1904,  ch.  85 ;  Laws  of  Iowa,  1907,  chs,  126,  127 ;  Laws  of  Iowa, 
1909,  ch.  144;  Laws  of  Iowa,  1913,  ch.  196,  sec.  3. 

481  Laws  of  Iowa,  1884,  ch.  132, 

482  Laws  of  loiva,  1896,  ch.  86. 

The  law  is  consolidated  in  the  Code  of  1897,  sees.  2469-2477. 

483  Laws  of  Iowa,  1902,  ch.  97. 

*»*Laws  of  Iowa,  1902,  ch.  149;  Laws  of  Iowa,  1904,  ch.  136,  sec.  5;  Laws  of 

23 


354  ECONOMIC  LEGISLATION  IN  IOWA 

Iowa,  1906,  ch.  103,  sec.  6;  Laws  of  Iowa,  1907,  ch.  128.     See  also  Laws  of 
Iowa,  1904,  joint  resolution  4,  p.  209. 

i^^  Laws  of  Iowa,  1913,  ch.  196;  Supplemental  Supplement  to  the  Code  of 
Iowa,  1915,  sees.  2470,  2473. 

486  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees,  2477-gl, 
2477-g2,  2477-g3. 

487  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  95,  96. 

488  Laws  of  Iowa,  1902,  ch.  149, 

A  law  for  the  preseiration  of  the  health  of  female  employees  which  required 
seats  to  be  provided  for  such  employees  was  passed  in  1892. —  Laws  of  Iowa, 
1892,  ch.  47. 

489  Laws  of  Iowa,  1911,  chs.  171,  172, 

490  Low«  of  Iowa  (public),  1874,  ch.  14;  Laws  of  Iowa,  1882,  ch.  89,  sec.  7. 
See  Downey's  History  of  Labor  Legislation  i?i  Iowa,  pp.  97,  98. 

491  Laws  of  Iowa,  1882,  ch.  89,  sec.  4;  Laws  of  Iowa,  1888,  ch.  1,  sec.  17. 

492  Laws  of  Iowa,  1902,  ch.  150. 

493  Laws  of  Iowa,  1904,  ch.  136. 

494  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  4999-a6, 
4999-a7,  4999-a8,  4999-a9,  4999-alO,  4999-all. 

See  also  Laws  of  Iowa,  1909,  chs.  168,  220;  Laws  of  Iowa,  1911,  ch.  128; 
Laws  of  Iowa,  1913,  ch.  305. 

495  Laws  of  Iowa  (public),  1874,  ch.  31,  sec.  5;  Laws  of  Iowa,  1880,  ch.  202, 
sec.  13;  Laws  of  Iowa,  1884,  ch.  21,  sec.  13;  Code  of  1897,  sec.  2489;  Laws  of 
Iowa,  1906,  ch.  103,  sec.  1. 

498  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  112—117. 

497  Laws  of  Iowa,  1902,  chs.  128,  149,  sec,  2. 

498  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  121-143. 

499  Laws  of  Iowa,  1906,  ch.  103. 

BOO  Laws  of  Iowa,  1909,  ch.  145. 

001  Haynes  's  Child  Labor  Legislation  in  Iowa  in  Iowa  Applied  History  Se- 
ries, Vol.  II,  pp.  597,  598. 

602  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sees.  2477-a,  2477-al, 
2477-b,  2477-c,  2477-d. 

C03  Code  of  1851,  sec.  2758;  Code  of  1897,  sec.  5059. 

Laws  of  Iowa,  1866,  ch.  135;  Laws  of  Iowa,  1868,  ch.  45;  Laws  of  Iowa 
(public),  1874,  ch.  38;  Code  of  1897,  sec.  5025. 

B04  Laws  of  Iowa,  1886,  ch.  71. 


NOTES  AND  REFERENCES  355 

806  Laws  of  Iowa,  1888,  ch.  57 ;  Laws  of  Iowa,  1892,  ch.  36 ;  Code  of  1897, 
sees.  5049,  5051;  Laws  of  Iowa,  1892,  ch.  33,  see.  24;  Code  of  1897,  sec.  1123; 
Laws  of  Iowa,  1884,  ch.  200,  sec.  14;  Code  of  1897,  sec.  1535. 

606  Low*  of  Iowa,  1907,  chs.  31,  128;  Supplemental  Supplement  to  the  Code 
cf  Iowa,  1915,  sees.  2477-gl,  2477-g2,  2477-g3. 

607  Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  191,  192;  Laws  of 
Iowa,  1886,  ch,  20. 

608  Laws  of  Iowa,  1913,  ch.  292. 

C09  Briggs  's  Social  Legislation  in  Iowa,  pp.  268,  269. 

610  Downey 's  History  of  Labor  Legislation  in  Iowa,  pp.  182,  183. 

611  Laws  of  Iowa,  1862,  ch.  169,  sec.  7. 

612  Laws  of  Iowa,  1870,  ch.  121. 

61S  Laws  of  Iowa  (public),  1872,  ch.  65. 

514  Code  of  1873,  sec.  1307;  Code  of  1897,  see.  2071. 

015  Code  of  1873,  sec.  1278;  Code  of  1897,  sec.  2039;  Laws  of  Iowa,  1902,  ch. 
«1. 

ci«Lo«?«  of  Iowa,  1890,  ch.  18,  see.  6;  Code  of  1897,  see.  2083. 

617  Laws  of  Iowa,  1907,  ch.  181. 

518  Laws  of  Iowa,  1909,  chs.  124,  219. 

619 Downey's  History  of  Labor  Legislation  in  Iowa,  pp.  210,  211. 

520  Briggs 's  Social  Legislation  in  Iowa,  p.  271. 

621  Downey's  History  of  WorTc  Accident  Indemnity  in  Iowa,  p.  156. 

622  Laws  of  Iowa,  1911,  ch.  205. 

See  also  the  Beport  of  Employers'  Liability  Commission,  1912,  pp.  3,  4. 

623 Beport  of  Employers'  Liability  Commission,  1912,  pp.  26-49. 

624Horack's  The  Work  of  the  Thirty-fifth  General  Assembly  of  Iowa  in  The 
Jowa  Journal  of  History  and  Politics,  Vol.  XI,  pp.  588-599. 
See  also  Laws  of  Iowa,  1913,  ch.  147. 

626  Laws  of  Iowa,  1917,  chs.  67,  188,  270,  336,  409,  418. 

626  Sampson 's  Legal  Opinions  on  Various  Phases  of  the  Iowa  Worlcmen's 
Compensation  Act,  being  a  pamphlet  issued  by  the  Iowa  Industrial  Commis- 
sion, 1915,  pp.  24,  25;  The  Begister  and  Leader  (Des  Moines),  June  23,  1914, 
p.  1. 


356  ECONOMIC  LEGISLATION  IN  IOWA 

CHAPTER  XII 
827  Keokuk  v.  Scroggs,  39  Iowa  447. 

628  Laws  of  the  Territory  of  Wisconsin,  1836,  p.  65.  This  law  was  repealed 
in  1840.     See  Laws  of  the  Territory  of  Iowa  (extra  session),  1840,  ch.  29. 

620  Special  charters  were  granted  to  about  forty  towns  and  cities,  some  of 
which  were  granted  as  many  as  four  different  charters.  For  the  acts  granting 
these  charters  see  Laws  of  the  Territory  of  Wisconsin,  1837-1838,  chs.  84,  86; 
Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  248,  265 ;Laws  of  the  Territory 
of  Iowa,  1839-1840,  ch.  52;  Laws  of  the  Territory  of  Iowa,  1840-1841,  chs.  44, 
80,  89;  Laws  of  the  Territory  of  Iowa,  1841-1842,  chs.  19,  57,  89,  122;  Laws 
of  the  Territory  of  Iowa,  1842-1843,  ch.  25;  Laxvs  of  the  Territory  of  loioa, 
1843-1844,  ch.  138;  Laws  of  the  Territory  of  Iowa,  1845,  ch.  54;  Laws  of  the 
Territory  of  Iowa,  1845-1846,  ch.  123;  Laws  of  Iowa,  1846-1847,  chs.  38,  79, 
82,  110;  Laws  of  Iowa  (extra  session),  1848,  ch.  64;  Laws  of  Iowa,  1848-1849, 
chs.  3,  87;  Laws  of  Iowa,  1850-1851,  chs.  32,  43,  50,  52,  55,  62,  82,  88;  Laws  of 
Iowa,  1852-1853,  chs.  27,  63,  64;  Laws  of  loxva,  1854-1855,  chs.  11,  18,  71,  85, 
89,  91,  102;  Laws  of  Iowa  (extra  session),  1856,  chs.  15,  16,  20,  23;  Laws  of 
Iowa,  1856-1857,  chs.  41,  42,  44,  100,  121,  122,  128,  137,  150,  152,  163,  185, 
197,  202,  210,  211,  238,  253. 

In  addition  to  granting  these  special  charters  the  legislature  made  many 
amendments  to  them  after  they  were  granted. 

630  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  248, 

631  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  265. 

632  Laws  of  the  Territory  of  Iowa,  1841-1842,  eh.  57,  sees.  8,  16. 

633  For  examples  see  Laws  of  Iowa,  1856-1857,  chs.  41,  121,  or  202. 

The  powers  granted  to  the  city  of  Davenport  by  the  special  charter  of  1855 
were  as  follows:  "to  provide  the  city  with  water;  to  erect  hydrants  and 
pumps  in  the  streets  for  the  convenience  of  the  inhabitants;  to  open,  alter, 
abolish,  widen,  extend,  establish,  grade,  pave,  or  otherwise  improve  and  keep 
in  repair  streets,  avenues,  lanes  and  alleys;  to  establish,  erect  and  keep  in 
repair  bridges  ....  to  provide  for  lighting  the  streets,  and  erecting 
lamp  posts  ....  to  erect  market  houses,  establish  markets  and  market 
places,  and  provide  for  the  government  and  regulation  thereof  ....  to 
improve  and  preserve  the  navigation  of  the  Mississippi  river  within  the  limits 
of  the  city;  to  erect,  repair  and  regulate  public  wharves  and  docks;  to  regu- 
late the  erection  and  repair  of  private  wharves,  and  the  rates  of  wharfage 
thereat;  to  license,  tax,  and  regulate  auctioneers,  transient  merchants,  retailers 
and  grocers,  taverns,  ordinaries,  hawkers,  pedlars,  brokers,  pawnbrokers  and 
money  changers;  to  license,  tax,  and  regulate  hackney  carriages,  wagons,  carts 
and  drays,  and  fix  the  rates  to  be  charged  for  the  carriage  of  persons,  and  for 
wagonage,  cartage,  and  drayage  of  property;  to  license  and  regulate  porters, 
and  fix  the  rates  of  porterage     ....     to  provide  for  the  prevention  and 


NOTES  AND  REFERENCES  357 

extinguishment  of  fires,  and  to  organize  and  establish  fire  companies;  to  regu- 
late or  prohibit  the  erection  of  wooden  buildings  in  any  part  of  the  city  .  . 
.  .  to  establish  standard  weights  and  measures,  and  to  regulate  the  weights 
and  measures  to  be  used  in  the  city,  in  all  cases  not  otherwise  provided  for  by 
law.  To  provide  for  the  inspection  and  measuring  of  lumber  and  other  build- 
ing materials,  and  for  the  measurement  of  all  kinds  of  mechanical  work;  to 
provide  for  the  inspection  and  weighing  of  hay  and  stone  coal,  the  measuring 
of  charcoal,  fire  wood  and  other  fuel  to  be  sold  or  used  in  the  city;  to  provide 
for,  and  regulate  inspection  of  tobacco,  beef,  pork,  flour,  meal  and  whiskey,  in 
barrels;  to  regulate  the  weight,  quality  and  price  of  bread  to  be  sold  and  used 
in  the  city". —  Laws  of  Iowa,  1850-1851,  ch.  55,  Art.  V,  see.  2,  pp.  117,  118. 

See  also  Art.  VIII. 

Provisions  in  other  charters  authorized  the  towns  to  subscribe  for  stock  in 
railroad  companies  and  pay  for  the  same  by  an  issue  of  city  bonds,  to  license 
and  regulate  insurance  companies,  to  subscribe  for  stock  in  plank  road  com- 
panies, to  regulate  broker  and  loan  oflSces,  and  to  license  and  regulate  many 
other  businesses.  See  Laws  of  the  Territory  of  Iowa,  1845,  ch.  54;  Laws  of 
Iowa,  1852-1853,  ch.  49,  sec.  2,  ch.  77,  sec.  10;  Laws  of  Iowa,  1850-1851,  ch. 
67,  sec.  1;  Laws  of  Iowa,  1856-1857,  ch.  102,  sec.  15,  ch.  127,  sec.  19,  ch.  185, 
see.  14,  ch.  210,  sec.  7,  ch.  253,  sees.  16-20. 

C34  Laws  of  Iowa,  1846-1847,  ch.  117. 

035  Code  of  1851,  ch.  42.     See  sees.  665,  666,  670,  671,  672. 

536  Constitution  of  the  State  of  loxoa,  1857,  Art.  Ill,  sec.  30. 

«37  Laws  of  Iowa,  1858,  ch.  157,  sees.  28-40. 

538  Laws  of  Iowa,  1858,  ch.  157,  sec.  41. 

539  1,0^8  of  Iowa  (general),  1872,  ch.  78. 

540  For  the  other  laws  of  the  period  1851-1873  which  relate  to  the  ordinance 
power  of  cities  see  Laws  of  Iowa,  1862,  ch.  97;  Laws  of  Iowa,  1870,  chs.  80, 
179;  Laws  of  Iowa  (general),  1872,  chs.  1,  13,  45,  78,  98,  130.  See  also  Code 
of  1873,  sees.  454-500,  525-529. 

641  Keokuk  v.  Scroggs,  39  Iowa  447;  Code  of  1897,  see.  695. 

^i2  Supplement  to  the  Code  of  Iowa,  1913,  sees.  696,  700,  700-f,  737,  737-a; 
Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  see.  701-a. 

^i^Code  of  1897,  sees.  710-715;  Supplement  to  the  Code  of  Iowa,  1913,  sees. 
709-a,  711,  713-a,  713-b;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915, 
see.  711-a. 

644  Code  of  1897,  see.  716. 

545  Code  of  1897,  sec.  717. 

846  Code  of  1897,  sees.  718,  719. 


358  ECONOMIC  LEGISLATION  IN  IOWA 

547  Supplement  to  the  Code  of  Iowa,  1913,  sec.  720. 

54S  Supplement  to  the  Code  of  Iowa,  1913,  sees.  721,  722,  724;  Code  of  1897, 
sec.  723. 

549  Supplement  to  the  Code  of  Iowa,  1913,  sec.  725. 

550  Supplement  to  the  Code  of  Iowa,  1913,  sees.  741-w,  741--wl,  741-w2. 

551  Supplement  to  the  Code  of  Iowa,  1913,  Title  V,  ch.  5. 

^^2  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sec.  751;  Code  of 
1897,  sees.  752,  753. 

^^^  Code  of  1897,  see.  754;  Supplemental  Supplement  to  the  Code  of  Iowa, 
1915,  sec.  754-a. 

654  Code  of  1897,  sec.  767. 

555  Code  of  1897,  sec.  775;  Supplement  to  the  Code  of  Iowa,  1913,  sec.  776. 

556  Supplement  to  the  Code  of  Iowa,  1913,  sec.  792;  Code  of  1897,  sec.  794. 

557  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  sec.  849-a. 

558  Supplement  to  the  Code  of  Iowa,  1913,  sees.  720,  721. 

See  also  Downey's  Urban  Utilities  in  Iowa  in  Iowa  Applied  History  Series, 
Vol.  I,  pp.  187-189. 

659  Downey 's  Urban  Utilities  in  Iowa  in  Iowa  Applied  History  Series,  Vol. 
I,  pp.  188,  189. 

Supplement  to  the  Code  of  Iowa,  1913,  see.  776;  Code  of  1897,  sees.  767,  775. 

660  Code  of  1897,  sec.  2158;  Chamberlain  v.  Iowa  Telephone  Company,  119 
Iowa  619   (1903). 

561  Farmers  Telephone  Company  v.  Washta,  157  Iowa  447  (1912). 

862  Downey 's  Urban  Utilities  in  Iowa  in  Iowa  Applied  History  Series,  Vol. 
I,  pp.  189,  190. 

Supplement  to  the  Code  of  Iowa,  1913,  sees.  720,  725;  Code  of  1897,  sees. 
767,  775,  834. 

563  Downey 's  Urban  Utilities  in  Iowa  in  Iowa  Applied  History  Series,  Vol. 
I,  pp.  190,  191. 

Supplement  to  the  Code  of  Iowa,  1913,  sees.  720,  724,  741-a. 

CHAPTER  XIII 

564  The  writer  wishes  to  acknowledge  that  he  has  made  very  free  use  of  Mr. 
John  E.  Brindley's  History  of  Taxation  in  Iowa,  in  the  preparation  of  this 
chapter. 

666  Ely's  Taxation  in  American  States  and  Cities,  p.  55. 

«««See  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  p.  3. 


NOTES  AND  REFERENCES  359 

567  United  States  Statutes  at  Large,  Vol.  V,  p.  237.  The  Organic  Act  may  be 
found  also  in  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  34,  sec.  6. 

668  Law*  of  the  Territory  of  Iowa,  1838-1839,  pp.  401-418,  419.  These 
acts  were  approved  on  January  24  and  25  respectively,  1839.  They  are  almost 
exact  copies  of  acts  vrhich  had  been  passed  by  the  Legislative  Assembly  of  the 
original  Territory  of  Wisconsin  about  a  year  earlier. —  See  Laws  of  the  Terri- 
tory of  Wisconsin,  1837-1838,  chs.  68,  93. 

569  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  401,  sec.  1. 

^■!o  Laws  of  the  Territory  of  Iowa,  1838-1839,  p.  401,  sees.  1,  2.  For  the 
other  provisions  pertaining  to  licenses  see  sees.  44-48. 

«7i  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  401-403,  sees.  3-6. 

572  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  403,  404,  sees.  7-12. 

573  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  404-406,  sees.  13-17. 

574  Laws  of  the  Territory  of  Iowa,  1838-1839,  pp.  418,  419. 

575  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  p.  7. 

576  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  p.  8, 

577  Laws  of  the  Territory  of  Iowa,  1839-1840,  ch.  49. 

578  Laws  of  the  Territory  of  Iowa,  1839-1840,  ch.  12. 

579  Laws  of  the  Territory  of  Iowa,  1840-1841,  ch.  70. 

580  Laws  of  the  Territory  of  Iowa,  1840-1841,  ch.  90. 

681  Revised  Statutes  of  the  Territory  of  Iowa,  1842-1843,  ch.  132.  See 
also  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  12-14. 

The  provisions  pertaining  to  the  Territorial  revenue  were  inconsistent  in  this 
act.  Section  15  provides  for  a  rate  of  half  a  mill  on  the  dollar;  section  51  pro- 
vides for  a  tax  of  one-quarter  mill  on  all  taxable  property. —  Revised  Statutes 
of  the  Territory  of  Iowa,  1842-1843,  ch.  132,  sees.  15,  51. 

582  Laws  of  the  Territory  of  Iowa,  1843-1844,  ch.  21. 

An  amendatory  act  was  also  passed  by  this  same  Legislative  Assembly  which 
provided  for  the  filling  of  vacancies  in  the  office  of  collector. —  See  ch.  1,  p.  1. 

A  separate  act  for  assessing  Territorial  tax  was  also  passed  at  this  session 
of  the  Legislative  Assembly. —  See  ch.  29,  p.  52. 

583  iows  of  the  Territory  of  Iowa,  1845,  ch.  5.  See  also  Brindley's  History 
of  Taxation  in  Iowa,  Vol.  I,  pp.  14—17. 

584  Laws  of  the  Territory  of  Iowa,  1845-1846,  ch.  7. 

An  additional  tax  of  "three-fourths  of  one  mill  per  cent."  was  authorized 
in  1846. —  See  Laws  of  the  Territory  of  Iowa,  1845-1846,  ch.  13. 

686  Brindley 's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  16-22. 


360  ECONOMIC  LEGISLATION  IN  IOWA 

«86  Constitutio7i  of  the  State  of  Iowa,  1846,  Art.  I,  sec.  6 ;  Art.  Ill,  sec,  10. 
687  See  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  23-29. 

588  Laws  of  Iowa,  1846-1847,  ch.  100. 

589  Laws  of  Iowa  (extra  session),  1848,  ch.  63.  See  also  Laws  of  Iowa, 
1848-1849,  ch.  92. 

690  Code  of  1851,  Title  VI,  ch.  37. 

591  Code  of  1851,  ch.  37,  sec.  454,  ch.  38,  sees.  568,  569. 

592  Code  of  1851,  ch.  37,  sec.  456. 

693  Code  of  1851,  ch.  38,  sees.  567,  588. 

s9iCode  of  1851,  ch.  37,  sees.  510,  511,  512. 

695  Code  of  1851,  ch.  37,  sec.  455. 

596  Code  of  1851,  ch.  37,  sees.  457,  466,  467. 

597  Code  of  1851,  ch.  37,  sees.  468,  469, 

598  Code  of  1851,  ch.  37,  sees.  480,  481,  482,  484,  eh.  39,  sec.  614, 

599  Code  of  1851,  eh.  37,  sees.  495-510. 

«oo  Brindlej 's  History  of  Taxation  in  Iowa,  Vol.  I,  p.  40. 

601  Laws  of  Iowa,  1852-1853,  eh.  69. 

602  Laws  of  Iowa,  1856-1857,  eh.  146. 

Por  other  minor  amendments  see  Laws  of  Iowa,  1854-1855,  chs.  109,  162. 

603  Constitution  of  the  State  of  Iowa,  1857,  Art.  I,  sec.  6,  Art.  Ill,  see.  30, 
Art.  VIII,  sec.  2. 

604  Constitution  of  the  State  of  Iowa,  1857,  Art.  XI,  sec.  3,  Art.  VII,  sees. 
1,2. 

605  Laws  of  Iowa,  1858,  eh.  152. 

This  same  General  Assembly  passed  several  amendatory  acts  pertaining  to 
delinquent  taxes  in  municipalities,  assessment,  and  equalization. —  See  Laws  of 
Iowa,  1858,  chs.  90,  105,  111,  145. 

606  Laws  of  Iowa,  1858,  ch.  154,  sec.  6. 

607  Bevision  of  1860,  ch.  45. 

608  Revision  of  1860,  ch.  45,  sees.  750-790. 

000  Revision  of  1860,  ch.  45,  sec.  710, 

Almost  none  of  chapter  37  of  the  Code  of  1851  was  in  force  by  virtue  of  its 
original  enactment  by  1860  although  most  of  it  was  by  subsequent  enactment, 
A  part  was  repealed  by  ch.  69  of  the  Laws  of  Iowa,  1852-1853.  More  of  it 
was  repealed,  as  well  as  the  last  named  act,  by  ch.  146  of  the  Laws  of  Iowa, 
1856-1857.     The  last  named  act  was  for  the  most  part  repealed  in  1858,  ch. 


NOTES  AND  REFERENCES  361 

152,  while  most  of  the  code  and  of  the  act  of  1852-1853  were  either  with  or 
without  modification,  re-enacted  hj  the  above  mentioned  ch.  152  of  the  Laws  of 
Iowa,  1858,  which,  with  many  amendments,  reappears  substantially  in  ch.  45  of 
the  Revision  of  1860. —  See  note  on  pp.  108,  109  of  the  Revision  of  1860. 

910  Laws  of  Iowa  (extra  session),  1861,  ch.  24. 

«ii  Laws  of  Iowa,  1862,  ch.  17.    See  also  Laws  of  Iowa,  1864,  ch.  43. 

612  Laws  of  Iowa,  1862,  ch.  19.  For  other  acts  passed  by  the  Ninth  General 
Assembly  pertaining  to  further  decentralization  in  administration,  collection  of 
delinquent  taxes,  and  the  reception  of  Auditor's  warrants  in  payment  of  taxes 
see  Laws  of  Iowa,  1862,  chs.  21,  110,  154,  168,  173.  See  also  Laws  of  Iowa 
(extra  session),  1862,  cL.  8. 

613  For  the  tax  legislation  enacted  from  1864  to  1872  inclusive  see  Laws  of 
Iowa,  1864,  chs.  43,  57,  79,  89,  93,  100,  124;  Laws  of  Iowa,  1866,  chs.  87,  91, 
92,  103,  104,  124,  143;  Laws  of  Iowa,  1868,  chs.  75,  76,  92,  137,  140,  190;  Laws 
of  Iowa,  1870,  chs.  14,  18,  20,  40,  54,  59,  65,  89,  90,  105,  116,  138,  181,  187; 
Laws  of  Iowa  (pubUc),  1872,  chs.  3,  17,  19,  21,  28,  31,  78,  120,  124,  132. 

614  Law*  of  loiva,  1868,  ch.  92;  Laws  of  Iowa  (public),  1872,  ch.  3. 

615  Laws  of  Iowa,  1870,  ch.  138. 

616  Laws  of  Iowa,  1870,  chs.  20,  59,  116. 

617  Lows  of  Iowa  (public),  1872,  ch.  21. 

6i8Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  68,  69,  276. 

The  maximum  levies  authorized  by  law  in  1872  were  as  follows :  * '  for  the 
State,  two  mills;  for  the  county,  for  ordinary  revenue,  four  mills,  for  high 
schools,  four  mills,  for  bridges,  three  mills,  and  for  public  buildings,  two  mills ; 
for  townships,  for  roads,  five  mills,  for  railroads,  fifty  mills;  and  for  school 
districts  and  sub-school  districts,  fifteen  mills." — Brindley's  History  of  Tax- 
ation in  Iowa,  Vol.  I,  p.  276. 

610  Code  of  1873,  sees.  Ill,  796-919. 

620  Brindley 's  History  of  Taxation  in  Iowa,  Vol.  I,  pp.  70-105. 

621  Brindley's  History  of  Taxation  in  Iowa,  Vol.  I,  p.  90. 

622  Shambaugh's  Messages  and  Proclamations  of  the  Governors  of  Iowa,  Vol. 
VI,  pp.  341-343. 

623  Laws  of  Iowa,  1892,  ch.  72.  The  preamble  to  this  act  is  interesting  in 
this  connection  as  indicating  to  some  extent  the  dissatisfaction  with  the  rev- 
enue system: 

"Whereas,  The  methods  of  raising  revenue  are  generally  recognized  as  being 
burdensome,  unequal,  and  unfair  in  their  operations,  and 

' '  Whereas,  Some  system  of  taxation  should  be  de\'ised  that  will  command  the 
respect  and  confidence  of  the  people,  and. 


362  ECONOMIC  LEGISLATION  IN  IOWA 

"Whereas,  It  is  impossible  to  amend  or  change  the  present  revenue  laws 
without  re-writing,  revising  and  reforming  the  same,  and  such  work  is  im- 
practical during  a  session  of  any  general  assembly". 

624  See  Report  of  the  Revenue  Commission,  1893,  pp.  17-56. 

625  Code  of  1897,  sec.  1305. 

626  Laws  of  Iowa,  1900,  ch.  50. 

627  Laws  of  Iowa,  1911,  ch.  66. 

628  Laws  of  Iowa,  1911,  ch.  63. 

^^9  Senate  Journal,  1907,  pp.  686,  905;  Senate  Journal,  1909,  p.  426. 
630  Iowa  Documents,  1911,  Vol.  I,  p.  8. 
«3i  Laws  of  Iowa,  1911,  ch.  204,  sec.  2. 

632  Report  of  the  Special  Tax  Commission,  1912,  p.  75. 

633  jffowe  Journal,  1913,  p.  1129;  Senate  Journal,  1913,  p.  880. 

634  Senate  Journal,  1915,  p.  884. 

^^^  Report  of  the  Revenue  Commission,  1893,  p.  15;  Laws  of  Iowa,  1896,  ch. 
28. 

eseiaws  of  Iowa,  1896,  ch.  28;  Brindley's  History  of  Taxation  in  Iowa, 
Vol.  I,  pp.  226,  227. 

637  Laws  of  Iowa,  1898,  ch.  37 ;  Laws  of  Iowa,  1900,  ch.  51 ;  Laws  of  Iowa, 
1902,  ch.  63;  Laws  of  Iowa,  1904,  ch.  51;  Laws  of  Iowa,  1906,  chs.  54,  55; 
Laws  of  Iowa,  1909,  ch.  92. 

638  Laws  of  Iowa,  1911,  ch.  68.    See  also  Laws  of  Iowa,  1913,  chs.  120,  121. 

639  The  material  in  this  section  is  derived  from  the  following  sources :  Code 
of  1897 ;  Supplement  to  the  Code  of  Iowa,  1913;  Supplemental  Supplement  to 
the  Code  of  Iowa,  1915;  Taxation  and  Revenue  Systems  of  State  and  Local 
Governments  (Bureau  of  the  Census),  1914,  pp.  79-84;  and  Report  of  the  Spe- 
cial Tax  Commission,  1912,  pp.  17-25. 

640  Report  of  the  Special  Tax  Commission,  1912,  p.  24. 

641  Biennial  Report  of  the  Auditor  of  State,  1916,  pp.  159,  161. 

6*2  For  a  complete  list  of  business  taxes,  licenses,  and  fees  in  Iowa  see  Taxa- 
tion and  Revenue  Systems  of  State  and  Local  Governments  (Bureau  of  the 
Census),  1914,  pp.  81,  82. 

643  Report  of  the  Special  Tax  Commission,  1912,  p.  38. 

644  For  the  more  important  acts  relating  to  taxation  passed  from  1874  to 
1917  see  Laws  of  Iowa,  1874  (general),  chs.  28,  29,  45,  46,  62,  63,  66,  67; 
Laws  of  Iowa,  1876,  chs.  79,  113,  116,  131,  145;  Laws  of  Iowa,  1878,  chs.  50, 
59,  99,  101,  122,  155,  162,  174;  Laws  of  Iowa,  1880,  chs.  13,  36,  52,  57,  75,  109, 


NOTES  AND  REFERENCES  363 

132;  Laws  of  Iowa,  1882,  chs.  4,  32,  36,  45,  63,  136,  137,  158,  169;  Laws  of 
Iowa,  1884,  ehs.  68,  70,  72,  120,  182,  194,  200;  Laws  of  Iowa,  1886,  chs.  10,  13, 
78,  97,  132,  133;  Laws  of  Iowa,  1888,  chs.  16,  22,  43,  44,  45,  46,  47,  107,  193; 
Laws  of  Iowa,  1890,  ch,  130;  Laws  of  Iowa,  1892,  chs.  14,  35,  57,  72;  Laws  of 
Iowa,  1894,  chs.  22,  39,  62,  81,  91,  110;  Laws  of  Iowa,  1896,  chs.  26,  29,  30,  31, 
109;  Laws  of  Iowa,  1898,  chs.  27,  30,  32,  33,  34,  35,  36,  37;  Laws  of  Iowa, 
1900,  chs.  40,  41,  44,  46,  47,  48,  49,  50,  86,  148;  Laws  of  Iowa,  1902,  chs.  53, 
56,  59,  63;  Laws  of  Iowa,  1904,  chs.  2,  42,  43,  48,  49,  50,  51;  Laws  of  Iowa, 

1906,  chs.  9,  31,  33,  48,  49,  51,  52,  53,  54,  55,  56,  58,  60,  99,  173;  Laws  of  Iowa, 

1907,  chs.  5,  54,  55,  59,  60,  61,  62,  63;  Laws  of  Iowa,  1909,  chs.  79,  80,  81,  82, 
83,  84,  85,  86,  87,  88,  89,  90,  91,  92;  Laws  of  Iowa,  1911,  chs.  24,  29,  30,  61, 
62,  63,  64,  65,  66,  67,  68;  Laws  of  Iowa,  1913,  chs.  14,  17,  115,  116,  117,  118, 
122,  228;  Supplemental  Supplement  to  the  Code  of  Iowa,  1915,  Title  VII,  pp. 
106-114;  Laws  of  Iowa,  1917,  chs.  137,  343,  416. 


INDEX 


365 


INDEX 


Accident  insurance,   141,   144,   156 

Accident  insurance  companies,   142 

Accidents,  investigation  of,  53,  260 ;  report 
of,   259;   indemnity  for,   269-274 

Account,  money  of,  248 

Ad  valorem  system,  taxation  on  basis  of, 
57,  58,  62,  66,  296,  308,  309 

Administrator,    197 

Adulteration,  legislation  relative  to,  220- 
229,  231 

Advertising,  prohibition  of  fraudulent,   226 

Agents,   licensing  of,    160 

Agricultural  Experiment  Station,  Iowa,  70, 
73 

Agricultural  implements,  exemption  of, 
from  taxation,   290 

Agricultural   improvement   associations,    71 

Agricultural  seeds,  regulation  of  sale  of, 
225,   226 

Agricultural  societies,  legislation  relative  to, 
67-69 ;  relation  of,  to  State  department, 
70;  incorporation  of,  116;  exemption  of, 
from  taxation,  308 

Agricultural  Society,  State,  successor  to, 
69,   70;  reference  to,  79 

Agricultural  statistics,  compilation  of,  3 

Agriculture,  legislation  relative  to,  67-80; 
training  of  teachers  of,  71 ;  provisions 
for  education  in,  71-74;  summary  of  leg- 
islation relative  to,   78-80 

Agriculture,   State  Board  of,   70,   75 

Agriculture,  State  Department  of,  69,  79 ; 
composition   and   functions  of,    70 

Agriculture  and  Mechanic  Arts,  Iowa  State 
College  of,  highway  commission  at,  26, 
29 ;  establishment  of,  69 ;  president  of, 
70;  legislation  relative  to,  71-74;  refer- 
ence to,   77,   79,   81,   98 

Air   currents,   257 

Alleys,  care  of,  278,  279,  280;  street  rail- 
ways in,   285 

American  Experience  Table  of  Mortality, 
155 

Ames,   73,    77,   81 

Anderson,    L.   W.,    335 

Animal  Health,  Commission  of,   77,   80 

Anti-adulteration  laws,  220 


Anti-combination  laws,   129,    130 

Anti-trust  laws,    129,   130 

Apiarist,   State,  76 

Applications   for   insurance,    151 

Applications  for  roads,    19 

Appraisers,   307 

Arbitration,  State  Board  of,  provision  for, 
268 

Arbitration  of  labor  disputes,  provision  for, 
268,    269 

Articles  of  incorporation,  filing  of,  116, 
120,  121,  133,  134,  138,  139,  142,  152, 
187,  189,  192,  209;  amendments  to, 
118,  189,  211;  contents  of,  118,  189, 
190;  approval  of,   156,   157,  159 

Assessment  insurance  companies,    158 

Assessment  of  taxes,  290,  291,  292,  293, 
294,  295,  296-299,  300,  301,  302,  303; 
basis  of,   308-311 

Assessment   rates,    159 

Assessment  roll,  completion  of,  290;  cor- 
rection of,   291,  297,   311 

Assessments,  149 ;  report  on,  153 ;  levy  of, 
by  fraternal  associations,  158,  159; 
making  of,  for  benefit  of  creditors,  246- 
248 

Assessors,  131,  204,  292,  294,  295,  298, 
299,  305,  307;  position  and  powers  of, 
290,  291 ;  powers  and  duties  of,  293 ; 
listing  of  property  by,  310 

Assets,   report  of,    142 

Assignee,   197 

Assignment,  days  of,   237 

Assumption  of  risk,  55,  270,  271,  272,  273. 

Attachment,  writ  of,  113;  exemption  of 
wages  from,  252 

Attorney  General,  29,  120,  121,  159,  160, 
232;   duties  of,  53 

Auctioneering,  regulation  of,   250,  281 

Auctioneers,   regulation  of,   282 

Auditor,  State,  58,  139,  145,  160,  184, 
185,  187,  209,  210,  214,  296,  302;  cer- 
tificates issued  by,  124,  141,  142,  143, 
154;  reports  to,  124,  125,  142,  148, 
152,  154,  187,  188,  210,  212,  231;  se- 
curities deposited  with,  125,  154;  revo- 
cation of  certificates  by,   126;  statements 


367 


368 


ECONOMIC  LEGISLATION  IN  IOWA 


filed  with,  138,  140,  142,  191,  194;  ex- 
amination of  insurance  companies  by, 
143,  154,  157,  159,  160;  guarantee  fund 
deposited  with,  151;  articles  of  incor- 
poration filed  with,  152 ;  refusal  of,  to 
issue  certificates,  156;  examination  of 
fraternal  associations  by,  159;  insurance 
affairs  taken  from  control  of,  162 ;  bank 
examiners  appointed  by,  189,  190,  195; 
supervision   of  banking  taken   from,   200 

Automatic  couplers,    55,    259 

Automobiles,   insurance  of,   145 


Babbitt,   L.  "W.,   343 

Baggage,  liability  for  damage  to,  46,   60 

Baker,    Elihu,    343 

Bakeries,    sanitation   of,    227;    licenses   for, 

228 
Bank  Examiners,  State,  provision  for,   189, 

190,  191,  195 
Bank  notes,  issue  of,  by  State  banks,  168; 
issuance  of,  169,  172;  prohibition  of  is- 
suance of,  173 ;  issuance  of,  authorized, 
175;  regulation  of  circulation  of,  178, 
179,  180;  denominations  of,  179;  im- 
portance of,  of  State  Bank,  182 ;  re- 
demption of,  in  greenbacks,  182 ;  pay- 
ment of  taxes  in,   301 

Bank  of  United  States,  charter  of  second, 
168 

Bankers'  Association,  Iowa,  recommenda- 
tion of,    197 

Banking,  regulation  of,  2 ;  legislation  rela 
tive  to,  168-205 ;  discussion  of,  in  con 
stitutional  conventions,  172,  174;  con 
stitutional  provisions  relative  to,  172 
173,  174-176;  authorization  of,  175 
176;  provisions  for,  in  law  of  1858 
184-186 

Banking,   State  Department  of,  200 

Banking,   Superintendent  of,   191,   195,  200 

Bankrupt  law,  250 

Banks,  122,  132;  securities  of,  127;  tax 
ation  of,  130,  200-206,  288,  309;  legis 
lation  relative  to,  before  1858,  172-177 
need  for,  in  Iowa,  173,  174;  powers  of, 
184;  difficulty  in  securing  data  concern 
ing,  186,  187;  number  of,  incorporated 
187;  reports  by,  187,  188;  examination 
of,  189,  190,  191,  195;  development  of 
private,  199  (also  see  State  banks,  sav- 
ings banks,  etc.) 

Banks  of  deposit,    173,    184,   200 

Banks  of  discount,    173,   184,   200 

Banks  of  issue,  159,  184,  200;  prohibition 
of,   173 


Barbed-wire  patents,   250 

Barley,   weight  of  bushel  of,   216 

Beef   Cattle    Producers'    Association,    Iowa, 

76 
Bees,   inspection  of,   76 
Benevolent  institutions,   exemption  of,  from 

taxation,   308 
Benzine,    inspection   of,   231,   232 
Beverages,  trade  marks  of,  242 
Bill  posters,   regulation  of,   282 
Bills    of    exchange,    legislation    relative    to, 

237 
Bills  of  Exchange  Act,  237,  238 
Bills  of  lading  law,  241 
Blacklisting,   prohibition  of,   55 
Blasting,   regulation  of,  259 
Bloomington,  powers  granted  in  charter  of, 

278,   279 
Bloomington   Insurance   Company,   137 
Blue  sky  legislation,   126-129 
Boats,  legislation  relative  to,  7,   8 
Boies,  Horace,  recommendation  of,  303 
Bonds,  issuance  of,  in  aid  of  railroads,  38, 
39;    issuance  of,   by   railroads,    45,    116; 
issuance   of,    for   drainage,   91,    95;    pay- 
ment   of    contractors    in,    99 ;    regulation 
of    sale    of,    124,    126;    safe-keeping    of, 
144;    legislation    relative    to,    237;    taxa- 
tion of,  309,   310 
Bonson,    Richard,    343 
Books,    safe-keeping  of,    144 
Booth,   C.  H.,   343 
Bottomry,    141 
Bounties,   78 
Branches  of  State  Bank,  legislation  relative 

to,    178-181;  history  of,   181-184 
Brands,   recording  of,    78 
Breaks-through  in  mines,   258 
Brewer,   Peter,   13 

Bridge  company,  incorporation  of,   109 
Bridgeport,  bridge  at,   14 
Bridges,    draws   in,    10 ;    legislation   relative 
to,  13-16,  17,  22,  51,  117,  244;  Congress 
asked  to  aid  in  building  of,  16;  standard 
specifications  for,  29 ;  letting  of  contracts 
for,    29 ;    construction    of,    by    railroads, 
45;    contracts    for   use   of,    48;    improve- 
ment of,   53;   care  of,  284;   tax  rate  for, 
297,   300 
Brindley,    John    E.,    statement   by,    26,    58, 

292,  303 
Building  and  loan  associations,  118,  124, 
132;  character  of,  207,  208;  history  of, 
208;  legislation  relative  to,  208-214; 
taxation  of,  213,  309;  number  of,  214, 
346 


INDEX 


369 


Bulk  sales  law,   250 

Bulls,  laws  relative  to  keeping  of,  75 

Bureau  of  Labor  Statistics,  establishment 
and  work  of,  261-263;  factory  inspec- 
tion by,  264,  265;  reference  to,  275 

Burgess,   E.   A.,   335 

Burglary   insurance,    144 

Burial  expenses,  273 

Burlington,  branch  bank  at,  181;  reference 
to,  289 

Burlington    and    Missouri    River    Railroad, 

40,  326 

Bushel,    legal    weights    of,    216,    217,    219; 

measure  of  articles  by,   219 
Business,    restrictions    on    organization    of, 

2;   laws  to  promote,   233-243 
Business  enterprises,   incorporation  of,  107- 

109 
Business  taxes,   313 
Butter,  laws  relative  to  Imitations  of,   221, 

222,  223;  standard  for,  224;  trade  mark 

for,    229 

Caboose  cars,   construction  of,   260 
Calcium  carbide,   sale  of,   226,   227 
Canal  companies,   incorporation  of,    107 
Canals,   6    11,   85,    111,    117;    crossing  of, 

by  railroads,    37 
Candy  factories,  licenses  for,  228 
Canned  fruits,   adulteration   of,    222 
Canning    factories,    sanitation    of,    227;    li- 
censes for,  228;  hours  of  labor  in,  266 
Capital   stock,    114;    fees  for   record   of  in 
crease  of,  118;  regulation  of  issuance  of, 
121,   122,    190;   report  of,   122,    142;   as 
sessment  on  basis  of,  131;  statement  con 
cerning,   138,   185;  amount  of,   140,   141 
145,    151,    152,    179,    184,    188,    197;    in 
vestment  of,    140,    141,    193;   impairment 
of,    143,   189,   195;  provision  concerning, 
169;    increase  of,    170,    194;    relation  of 
circulation    to,     178,     179;    payment    of, 
180;    restrictions    on    changes    in,    180; 
taxation   on  basis  of,   203,   205 
Capitalistic  system,  251,   274,  275 
Carload  lots,   rates  for  shipments   in,   51 
Carroll,   B.  F.,  recommendation  of,   305 
Cars,  switching  of,  51;  brakes  on,  255 
Cash,  payment  of  taxes  in,  294 
Cassady,   P.   M.,   343 
Casualty  insurance,    141 
Cattle,  laws  relative  to  diseases  of,  76-78 
Cedar  Rapids,  bridge  at,    14 
Cedar  Rapids  and  Missouri  River  Railroad, 

41,  42,  326 


Cedar  River,  7;  ferries  across,  11;  bridge 
across,    14 

Cement,  investigation  relative  to  manufac- 
ture of,   338 

Cements,   courses  in,    73 

Census  Board,  57,  58,  297,  298,  300,  302 

Centralization,   17,  20,  21,  25,  32 

Ceramics,  courses  in,   73 

Certificates,  regulation  of  sale  of,    124 

Certificates  of  partnership,  contents  of, 
234;  filing  of,  235 

Charcoal,   sale  of,   219 

Charitable  institutions,  exemption  of,  from 
taxation,   308 

Charters,  granting  of,  by  special  acts,  110, 
277,  278;  violation  of,  112;  change  of, 
115;  duration  of,  121,  155,  170,  180, 
192 ;  granting  of,  to  insurance  com- 
panies, 135-137;  granting  of,  by  Nebras- 
ka Territory,  174;  forfeiture  of,  181; 
extension  of,   191 

Check-weighman,   255,  257 

Cheese,  adulteration  of,  221;  laws  relative 
to  imitations  of,   221,   222,   223 

Cheese  factories,  sanitation  of,   227,   228 

Chicago,  Burlington  and  Quincy  Railroad, 
64 

Chicago,   Iowa,  and  Nebraska  Railroad,   42 

Chicago,  Milwaukee  &  St.  Paul  Railroad, 
326 

Chicago,  Rock  Island  and  Pacific  Railroad, 
64,  326 

Chicago    and   Northwestern   Railroad,    64 

Child  labor  laws,  5;  enforcement  of,  257, 
263;  discussion  of,   265-267 

Children,  employment  of,  263 ;  laws  rela- 
tive to  labor  of,   265-267 

Church  property,  insurance  of,   148 

Cigarettes,  tax  on  sale  of,  313 

Circulation,  limitation  on,  178,  179,  180; 
federal  tax  on,  182,  186;  regulation  of, 
184,   185 

Cities,  powers  of,  relative  to  ferries,  13 ; 
bridge  tax  in,  15 ;  taxes  by,  in  aid  of 
railroads,  38-40;  inability  of,  to  tax  rail- 
roads, 58;  powers  of,  relative  to  tele- 
phone wires,  62 ;  power  of,  to  improve 
water-courses,  90,  92 ;  power  of,  to  en- 
act economic  legislation,  277-287,  356, 
357;   legal  status  of,   282 

City  councils,  powers  of,  relative  to 
bridges,  15;  reference  to,  77,  230;  pow- 
er of,  to  enact  economic  legislation,  277- 
287;  tax  rate  fixed  by,  312 

Civil  War,    43,    56,    182;    taxation    during, 


24* 


370 


ECONOMIC  LEGISLATION  IN  IOWA 


56,    57,    66;    financial   strain   caused  by, 
301 

Claims,  filing  of,  for  mechanics'  liens,  246 ; 
filing  of,  by  creditors,  247;  priority  of, 
247,   252 

Clark,   Ezekiel,   343 

Clay-working,   courses  in,    73 

Closed  season,   102,   103,   105 

Coal,  legal  weight  of,  217;  sale  of,  219; 
mining  of,  in  Iowa,  254;  weighing  of, 
257,   281 

Coal  dealers,  taxation  of,  310 

Coal  mining,  legislation  relative  to,  81 

Code  of  1851,  road  law  in,  20;  reference 
to,  34,  37,  45,  61,  74,  131,  163,  200, 
237,  242,  280,  303;  corporation  law  in, 
114,  115;  banking  prohibited  by,  173; 
provisions  of,  concerning  weights  and 
measures,  217;  provisions  of,  concerning 
pure  food,  221;  mechanics'  lien  law  in 
244;  provisions  of,  concerning  assign 
ment  of  property,  247;  provisions  of, 
concerning  money  of  account  and  inter 
est,  248;  provisions  of,  concerning  ten 
der  and  sureties,  249 ;  conspiracy  law  in, 
267;  revenue  law  in,  296-298 

Code  of  1873,  26,  46,  61,  85,  129,  148 
202,  301 ;  corporation  law  in,  116 
banking  law  in,  187,  188 ;  employers 
liability  law  in,  271;  revenue  law  in 
302,  308 

Code  of  1897,  road  legislation  in,  26;  ref 
erence  to,  62,  104,  203,  211,  213,  223 
232,  240,  245,  268,  304,  314;  drainage 
law  in,  92,  93 ;  corporation  law  in,  117 
120;  law  in,  relative  to  taxation  of  cor 
porations,  131;  insurance  law  in,  148 
insurance  taxation  law  in,  164,  165 ;  pro 
visions  of,  concerning  banks,  189,  190 
195,  196;  provisions  of,  concerning  loan 
and  trust  companies,  196,  197;  provi 
sions  of,  concerning  powers  of  munici 
palities,    281,    282 

Co-employment,   269 

Co-insurance,    147 

Coke,  sale  of,  219 

Cold  storage  goods,   227 

Cold  storage  warehouses,  regulation  of, 
226,   227 

Collateral  inheritance  tax,  306,  307 

Collection  of  taxes,  290,  291,  292,  293, 
297-299,   312 

Collectivism,  tendency  toward,  2 

Combinations,  legislation  against,  129,  130, 
145 


Commerce,  regulation  of,  2 ;  publications 
relative  to,  2,  3 ;  legislation  relative  to, 
215-250;  miscellaneous  laws  relative  to, 
248-250 

Commerce  Counsel,  position  and  duties  of, 
54 

Commercial  banks,  taxation  of,  203,  205 

Commercial  depression,    176 

Commissioner  of  Des  Moines  River  Im- 
provement,  9,   10 

Commissioner  of  Insurance,  147,  156,  167; 
reports  to,  149 ;  statements  filed  with, 
150;  position  and  powers  of,  162,  163 

Commissioner  of  Labor  Statistics,  powers 
and  duties  of,  261-263;  reference  to, 
264,    265,    268 

Commissioner  system  of  county  govern- 
ment,  22 

Commissioners,  duties  of,  in  laying  out 
roads,  18;  appointment  of,  for  State 
Bank,  178;  organization  of  State  Bank 
by,    181 

Common  carriers,  liability  of,  46 ;  legisla- 
tion relative  to,  59,  60;  regulation  of, 
129;   rights  and  duties  of,  241 

Common  Law,  233,  239,  243,  273;  modi- 
fications of,  with  regard  to  employers' 
liability,   269-271 

Communication,  provisions  for,  in  mines, 
258 

Comparative  negligence,    271 

Compensation,   schedule  of,  273 

Competition,  47;  combinations  to  prevent, 
130 

Compulsory  school  attendance,   266 

Conduits,   85 

Confectioneries,  sanitation  of,   227,   228 

Congress,  suggestion  for  memorial  to,  7; 
memorials  to,  7,  16,  22,  36,  37,  45,  46, 
48,  250;  aid  for  improving  Des  Moines 
River  given  by,  8-11;  aid  for  roads  giv- 
en by,  19 ;  land  granted  to  railroads  by, 
40,  42,  43,  63,  64,  325,  326;  swamp 
lands  granted  to  State  by,  86;  regula- 
tion of  interstate  commerce  by,  129 ;  ref- 
erence to,  170,  224;  bank  charter 
amended  by,  171;  power  of,  to  regulate 
commerce,    215 

Connecting  lines,   48 

Conservation  of  natural  resources,  2 ;  leg- 
islation relative  to,   84-106 

Consolidated  tax,  301 

Consolidation   of  railroads,   44 

Conspiracy,   law   against,    267 

Constitution  of  1846,  restrictions  placed  on 


INDEX 


371 


corporations  by,  35;  special  legislation 
prohibited  by,  110;  provisions  of,  rela- 
tive to  corporations,  137;  provisions  of, 
relative  to  banking,  172,  173,  199,  200; 
provisions  of,   affecting  taxation,   295 

Constitution  of  1857,  special  legislation 
prohibited  by,  21,  280;  drainage  amend- 
ment to,  96,  97;  provisions  of,  relative 
to  corporations,  115;  provisions  of,  con- 
cerning taxation  of  corporations,  131; 
provisions  of,  concerning  banking,  174- 
176;  reference  to,  278;  provisions  of, 
relative  to  taxation,  299 

Constitution  of  United  States,   3 

Constitutional  convention,  discussion  of 
banking  in,    172,    174 

Consumers,  laws  for  protection  of,  215-232 

Continuous  service,   limit  on,   55 

Contract  system  of  convict  labor,  253 

Contractors,  payment  of,  in  bonds,  98,  99 ; 
effect  of  mechanics'  lien  on,   244,   245 

Contracts,  letting  of,  for  drainage  projects, 
94 ;  publication  of  notices  of  letting  of, 
99;  regulation  of  sale  of,  124;  impair- 
ment of,  212;  making  of,  by  warehouse- 
men, 239,  240;  interest  rates  in,  248 

Contributory  negligence,  55,  270,  271,  272, 
273 

Convict  labor,  legislation  relative  to,  252, 
253 

Cooperative  associations,   123 

Cooperative  insurance  associations,   156 

Corn,  weight  of  bushel  of,   216 

Corn  and  Small  Grain  Growers'  Associa- 
tion,  Iowa,    76 

Corporations,  building  and  control  of  roads 
by,  23  ;  constitutional  restrictions  on,  35, 
110,  115,  137,  173,  175,  176;  liability 
of  stockholders  for  debts  of,  45 ;  taxa 
tion  of,  56,  130-132,  201,  288,  307,  309 
310;  legislation  relative  to,  107-134, 
233 ;  first  general  law  relative  to,  110 
114;  regulation  of  sale  of  securities  by, 
123-129;  combinations  of,  prohibited, 
129,  130;  summary  of  legislation  rela 
tive  to,  132-134;  political  contributions 
by,  prohibited,  162 ;  prohibition  of  bank- 
ing by,   173;  fees  paid  by,  340,  341 

Council  Bluffs,  38;  branch  bank  at,   181 

Counties,  duties  of,  to  repair  roads,  17; 
division  of,  into  road  districts,  18;  im- 
portance of,  in  road  work,  20 ;  financial 
powers  of,  increased,  22 ;  increase  in 
authority  of,  26;  distribution  of  motor 
vehicle  tax  among,  28;   aid  given  to  rail- 


roads by,  36,  38-40;  distribution  of 
taxes  among,  56-59,  61,  311;  agricul- 
tural societies  in,  67,  68;  agricultural 
improvement  associations  in,  71;  dis- 
posal of  swamp  lands  given  to,  86-88, 
333,  334;  construction  of  drains  and 
ditches  by,  89,  90 ;  drainage  bonds  of, 
91;  expenses  of  drainage  borne  by,  98; 
regulation  of  weights  and  measures  by, 
216;  standard  weights  and  measures  for, 
217,  218;  inspection  of  mines  by,  254; 
assessment  and  collection  of  taxes  by, 
289-295 ;  importance  of ,  in  taxation, 
292 ;  limit  on  debts  of,  299 

County   agents,    provision   for,    71 

County  agricultural  societies,  duties  of,  68, 
69;   support  of,   69 

County  attorneys,  duties  of,   223 

County  auditor,  89,  90,  92,  96,   100 

County   clerk,    216,    247,    298 

County  commissioner  system,  establishment 
of,   21,  22 

County  commissioners,  powers  of,  in  re- 
gard to  ferries,  12,  13 ;  reference  to,  19, 
20;  powers  of,  with  regard  to  roads,  19, 
20;  duties  of,  with  regard  to  taxation, 
290-295 

County  courts,  powers  of,  relative  to 
bridges,   15 ;  reference  to,   87 

County   engineers,    provision   for,    28,   29 

County  government,  changes  in  system  of, 
21,  22 

County  judge  system,   unpopularity  of,  21 

County  judges,  powers  of,  relative  to 
bridges,  15 ;  powers  of,  with  regard  to 
roads,  20;  reference  to,  74,  217;  func- 
tions of,  in  taxation,  298,  299 

County  mutual  insurance  associations,  148, 
149 

County  recorder,  articles  of  incorporation 
filed  with,   189;  reference  to,  239 

County  road  fund,  25,  26 

County  road  systems,   29 

County  supervisors,  powers  of,  relative  to 
bridges,  15 ;  duties  of,  with  regard  to 
roads,  20;  laws  relative  to,  21,  22;  pow- 
er of,  to  levy  road  taxes,  25 ;  duties  of, 
26,  30;  instruction  of,  26,  28;  reference 
to,  28,  71,  77,  81,  87,  218;  county  engi- 
neer employed  by,  29;  duties  of,  with 
regard  to  drainage,  89,  90,  91,  93-96, 
100,  101;  equalization  of  taxes  by,  311; 
tax  rate  fixed  by,   312 

County  treasurer,  217,  291,  292,  298;  du- 
ties of,   293;    collection  of  taxes  by,   312 


24 


372 


ECONOMIC  LEGISLATION  IN  IOWA 


Courts  of  equity,  powers  of,   119,   120,   123 

Cows,  care  of,  223 

Cream  gauge,   221 

Cream  test€rs,  manipulation  of,   224 

Creameries,  sanitation  of,  227,  228 

Credit,  instruments  of,  legislation  relative 
to,   236,   237 

Credit  insurance,   144 

Creditors,  protection  of,  109,  243-248; 
preference  in  payment  of,  188;  reference 
to,  235 ;  assignments  for  benefit  of,  246- 
248 ;  relation  of  sureties  to,   249 

Crops,  protection  of,    78 

Culverts,  standard  specifications  for,  29; 
letting  of  contracts  for,   29 

Currency,  demoralized  condition  of,  168, 
174;   reference  to,   250 

Custom   houses,    250 

Cyclone    insurance,    148 

Dairies,  regulation  of,  223 ;  sanitation  of, 
227 

Dairy  and  Food  Commissioner,  State,  70 ; 
powers  and  duties  of,  220-229  (see  also 
Food  and  Dairy  Commissioner) 

Dairy  Association,  Iowa  State,  76 

Dairy  industry,  encouragement  of,   75,   76 

Dairy  products,  manufacturers  of,  118 ; 
laws  relative  to  purity  of,  221;  trade 
mark  for,  243 

Damages,  responsibility  for,  22 ;  assessment 
of,  36,  37;  recovery  of,  for  injuries 
caused  by  stock,  74,  75 ;  assessment  of, 
for  construction  of  drains,  88,  89,  94; 
assessment  of,  on  taking  private  prop- 
erty,  96;  basis  of,   99 

Dams,  locks  at,  7,  8,  10;  legislation  rela- 
tive to,  84,  85 ;  fishways  in,   105 

Dart,  W.  S.,   343 

Davenport,  38,  41,  183;  branch  bank  at, 
181;  powers  granted  in  charter  of,  278, 
279,    356,    357 

Davenport  and  Iowa  City  Railroad  Com- 
pany,  38 

Debentures,  regulation  of  sale  of,    124 

Debts,  insurance  of  evidences  of,  145 ;  in 
terest  on,  248;  deduction  of,  296,  298 
309 

Decentralization,  17,  21,  32,  300,  302 
restoration  of,   20,   21 

Delinquent  taxes,  sale  of  property  for, 
291;  reference  to,  293,  302;  interest  on 
312 

De  Moine  Navigation  and  Railroad  Com 
pany,   10,  42 


Denatured  alcohol,   use  of,   224 

Dependents,    compensation   of,    273 

Depositors,  preference  given  to,  188;  pro- 
tection of,    195 

Deposits,  interest  on,  forbidden,  185;  re- 
ceiving of,  when  insolvent,  188;  limit 
on  amount  of,  193,  196;  withdrawal  of, 
193,  310;  receiving  of,  prohibited,  209; 
reference  to,   309 

Depot  grounds,  55 

Depots,  58 

Des  Moines,  77,  81,  162,  176;  branch  bank 
at,    181 

Des  Moines  County,  14 

Des  Moines  Rapids,   canal  around,    11 

Des  Moines  River,  7,  16;  legislation  rela- 
tive to  improvement  of,  8-11;  ferries 
across,    11 

Des  Moines  River  Improvement,  efforts  to 
settle   affairs  of,   41,    42 

Des  Moines  Valley  Railroad,  325,   326 

Dining  cars,  taxation  of,  58 

Directors,  liability  of,  for  corporate  debts, 
119,  132,  170,  189,  195;  penalty  for 
false  statements  by,  121;  election  of, 
140,  169,  209;  liability  of,  for  losses, 
143;  powers  of,  170;  choice  of,  for  State 
Bank,  178;  reference  to,  180,  187;  lia- 
bility of,  for  damages,  181;  meeting  of, 
of  State  Bank,  181,  182;  amount  of 
stock  owned  by,   190;  loans  to,   191,   193 

Disability,    compensation   during,   273 

Discount,  board  of,   170;  rate  of,   181 

Discrimination,  44,  53,  249;  prohibition 
of,  47,  49,  51,  52;  continuance  of,  50 

Disease,  legislation  relative  to,  among  ani- 
mals,  76-78 

Dissolution  of  banks,    191,   192 

District  courts,  duties  of,  84,  85 ;  reference 
to,    113,   247 

District  judges,  36 

Ditches,  construction  of,  88,  89,  90,  91, 
93-96;    applications   for,    89 

Dividends,  payment  of,  112,  119,  141;  re- 
port on,  153;  declaring  of,  170,  180, 
181 

Docks,   279;    department  of  public,   284 

Dodge,   Henry,   recommendation  of,   7 

Dogs,  tax  on,   78 

Domestic  animals,  legislation  relative  to, 
74-78;  improvement  of,  75,  76;  health 
of,   76-78;   protection  of,  78 

Double   insurance,    146 

Downey,   E.   H.,   271 

Dragging  of  roads,   27,  28,  29 


INDEX 


373 


Drain  tile,   test  for,   98 

Drainage,  legislation  relative  to,  85-102; 
need  of,  85 ;  constitutional  amendment 
relative  to,  96,  97;  summary  of  legisla- 
tion relative  to,    100-102 

Drainage,  Waterways  and  Conservation 
Commission,  powers  and  duties  of,  97, 
98;    recommendations  of,   98-100 

Drainage  and  Waterways,  Commissioner  of, 
suggestions  concerning,   99 

Drainage  bonds,  issuance  of,  91,  95;  in- 
vestment of  school  funds  in,   99 

Drainage  commissioners,  87 

Drainage  districts,  establishment  of,  90, 
93,    95;    trustees   of,    100 

Drainage  outlet,  right  of  way  for,  96 

Drainage  system,   281 

Drains,  55,  279;  construction  of,  across 
lands  of  others,  88,  89 ;  applications  for, 
88,  89;  construction  of,  89,  90-92,  93- 
96 

Drawbacks,  prohibition  of,  51 

Drug  vendors,   tax  on,   313 

Drugs,  laws  against  sale  of  unwholesome, 
221;  regulation  of  sale  of,  224 

Drums,  brakes  on,   255 

Dubuque,  ferry  at,  11;  reference  to,  16, 
38;  legislation  relative  to  Miners'  Bank 
at,  168-172;  branch  bank  at,  181 

Dubuque  and  Pacific  Railroad  Company,  45 

Dubuque  and  Sioux  City  Railroad,  326 

Dubuque  and  Sioux  City  and  Tete  des 
Morts  Branch  Railroad  Company,  40 

Dubuque  Insurance  Company,   137 

Dubuque  Mining  Company,   81 

Due  bills,   legislation  relative  to,   237 

Dust,   appliances  for  carrying  away  of,  264 

Dutton,  J.  W.,  343 

Earnings  (see  gross  earnings  and  net 
earnings) 

Economic  legislation,  activities  of  States  in, 
3 ;  definition  and  scope  of,  4,  5 ;  power 
of  municipalities  to  enact,   277-287 

Edgington,   Edward  T.,   343 

Education,  4 ;  provisions  for,  in  agricul- 
ture,  71-74 

Education,  State  Board  of,  77 

Electric  light  and  power  wiring,  282 

Electric  light  plants,  powers  of  municipal- 
ities with  regard  to,  283-287;  taxation 
of,   310 

Electric  transmission  lines,  taxation  of, 
310,   311 

Elevator  receipts,  239 


Eminent  domain,  96;  corporations  exer- 
cising right  of,    117 

Employees,  duties  of  employers  toward, 
269;  position  of,  under  compensation 
law,  272-274 

Employers,  insurance  of,  144;  duties  of, 
269;  position  of,  under  compensation 
law,    272-274 

Employers'  liability  and  workmen's  Com- 
mon Law  doctrine  of,  269-271;  law  of 
1913   relative  to,   272-274 

Employers'  Liability  and  Workmen's  Com- 
pensation   Commission,    272 

Employers'  liability  and  workmen's  com- 
pensation  insurance,   147,   150,   156 

Employment  Bureau,   State   Free,    263,  268 

Employment  bureaus,  regulation  of,  268, 
282 

Engineers,  employment  of,  89,  91,  94,  255; 
licensing  of,  282 

Engineering  Experiment  Station,   98 

English  Life  Table,  155 

Equalization  of  taxes,  292,  297,  298,  299, 
302,    310,    311 

Equipment  companies,  taxation  of,  61,  130, 
310,    311 

Escape  shafts,    256,   258 

Estates,   administration   of,    197 

Evidence,   regulations   concerning,   237 

Exchange,  regulation  of,  2 ;  need  for  me- 
dium  of,    174,   199;   bills  of,    237 

Execution,  issuance  of,   112,   113 

Executive  Council,  49,  59,  61,  78,  120, 
124,  160,  209,  210,  223,  261,  303,  308; 
railroad  taxes  assessed  by,  57,  58;  as- 
sessment of  taxes  by,  62,  310,  311;  is- 
suance of  capital  stock  regulated  by, 
121;  powers  of,  211,  212;  composition 
of,  302;  equalization  of  taxes  by,  311; 
tax  rate  fixed  by,  312 

Executors,    197,    249 

Exemptions  from  taxation,  290,  292,  293, 
294,  296,  298,  299,  301,  302,  308,  309, 
313 

Expenditures,   report   of,    142 

Explosions,  insurance  against  loss  by,  144 ; 
protection  against  danger  of,   230 

Explosives,  storing  of,  in  mines,  258;  man- 
ufacture of,  282 

Expositions,   holding  of,   68,   79 

Express   cars,   breaking  into,    60 

Express  companies,  supervision  of,  54; 
regulation  of,  60;  taxation  of,  60,  61, 
130,    288,    310,    311 

Express  rates,   regulation  of,   60 


374 


ECONOMIC  LEGISLATION  IN  IOWA 


Extortion,  44;  prohibition  of,  51,  52,  251, 
252 

Factories,  inspection  of,  224;  gathering  of 
information  concerning,  261,  262,  263; 
legislation  relative  to  labor  in,  264, 
265;   child  labor  in,   265-267 

Factory  inspectors,   provision  for,   261 

Factory  laws,   5 

Fair  grounds.  State,  control  of,  70 

Fairs,   holding  of,   68,   79;  reference  to,   71 

Fanning,    Timothy,    11 

Farm  hands,  272 

Farm  property,  exemption  of,  from  taxa- 
tion,  308 

Farmers,  dissatisfaction  among,  46 

Farmers'  institutes,  provision  for,  69 ;  ref- 
erence to,  71,  79 

Farmers'  mutual  insurance  companies,   118 

Farmington,    16 

Farmington  Insurance  Company,   187 

Farr,  Dr.,   155 

Federal  Court  for  Southern  District  of 
Iowa,   274 

Federal  government,  economic  regulation 
by,  2,  3 ;  expenses  of  Territory  borne  by, 
289 

Federal  Reserve  System,  membership  in, 
192,    196,   199 

Federal  Road  Aid  Act,  acceptance  of,  30, 
31 

Federal  tax,   payment  of,    301 

Feeding-stuffs,  regulation  of  sale  of,  225, 
226 

Fees,  118,  119,  120,  121,  122,  123,  133, 
143,  145,  148,  149,  151,  155,  159,  163, 
164,  190,  191,  195,  210,  212,  228,  313, 
340,   341 

Fellow  servant  doctrine,  55,  269,  270,  271, 
272,   273 

Fencing  of  right  of  way,   55 

Ferriage,   rates  of,    12 

Ferries,  legislation  relative  to,  11-13 ;  ref- 
erence to,  35,  51;  regulation  of,  283; 
licensing  of,   290 

Fertilizers,  regulation  of  sale  of,  226,  228 

Fidelity  companies,   132 

Fidelity  insurance,    141,    144 

Fiduciary  capacity,  power  to  act  in,   198 

Financial  depression,   176 

Fire,  liability  of  railroads  for  damage  by, 
46;   protection   against  danger  of,  230 

Fire  departments,  279,   280,  282 

Fire  escapes,  laws  relative  to,  263,  264, 
265 


Fire  insurance,  legislation  relative  to,  139- 
151 

Fire  insurance  companies,  combinations  be- 
tween, 130;  early  charters  to,  135-137; 
law  of  1857  relative  to,  137,  138;  taxa- 
tion of,   165 

Fire  insurance  policies,  standard  form  for, 
146 

Fire  limits,  282 

Fire  Marshal,  State,  creation  of  office  of, 
161 

Fire  zones,   281 

Fiscal  agent,   197 

Fish,  conservation  of,   102-106 

Fish  and  Game  Warden,  State,  powers  and 
duties  of,   104;  reference  to,  106 

Fish  Commission,   State,   103 

Fish  Commissioner,  103 

Fish  hatcheries,    105 

Fishways,   105 

Flavoring  extracts,   standards  for,  224 

Floods,  protection  from,  285 

Flour,    adulteration   of,   222 

Food,  regulation  of  manufacture  and  sale 
of,  2 ;  legislation  to  insure  purity  of, 
220-229 

Food-producing  establishments,  sanitation 
in,  226,  227,  228;  inspection  of,  228 

Food  and  Dairy  Commissioner,  State,  in- 
spection of  weights  and  measures  by, 
219,  220;  powers  and  duties  of,  223- 
229 

Foot  and  mouth  disease,   78 

Foreign  building  and  loan  associations, 
regulation  of,  210 

Foreign  corporations,  regulation  of,  116, 
117,    119,    121,    122,    123,    134 

Foreign  insurance  companies,  regulation  of, 
138,  139,  142,  143,  151,  152;  retalia- 
tory policy   against,    145,    155,    163,    164 

Forest  trees,  encouragement  of  planting  of, 
69,   301 

Fort  Madison,  branch  bank  at,  181;  refer- 
ence to,   253 

Fox  River,  6,  7 

Franchises,  granting  of,  by  municipalities, 
283-287;   regulation  of  granting  of,   286 

Fraternal  beneficiary  associations,  legisla- 
tion relative  to,  158,  159;  taxation  of, 
165 ;   exemption  of,  from  taxation,  308 

Fraud,  penalty  for,   112,   127,   237,  239 

Freight,  units  for  shipment  of,  51,  52; 
continuous  carriage  of,   52 

Freight  line  companies,  taxation  of,  58,  59, 
61,   130,  810,  311 


INDEX 


375 


Freight  pooling,  prohibition  of,   129 
Freight    rates,    fixing   of,    by   law,    46,    47; 

fixing    of,    by    commission,    51,    52,    53; 

investigation  of,  53 
Frosted  glass,  use  of,  on  locomotives,  260 
Frudden,   A.  F.,   335 
Fruit  boxes,   capacity   of,   219 
Fruit  trees,   encouragement  of  planting  of, 

69,   301 
Funds,   investment  in,    141,    147,   155,    156, 

159,   196,   210 
Fungicides,  regulation  of  sale  of,   229 
Furniture,     exemption     of,     from    taxation, 

290,    293,    308 

Game,  transportation  of,  48 ;  conservation 
of,    102-106 

Game  preserves,  105 

Gas  plants,  powers  of  municipalities  with 
regard  to,  283-287;  taxation  of,  310 

Gasoline,   inspection   of,   231,   232 

Galling,  W.  J.,   343 

Gear,  John  H.,  recommendations  of,  22 

General  Assembly,  power  of,  176;  direc- 
tors of  State  Bank  chosen  by,   178 

General  partnerships,  legislation  relative 
to,  233,   234 

General  property  tax,  payment  of,  by  cor- 
porations, 131,  132;  reference  to,  134, 
289,   290,  307,  308;  failure  of,  303 

General  welfare,  281 

Geological   Board,    82 

Geological  Survey,  legislation  relative  to, 
82,   83 

Goods,    classification   of,    51 

Government,  purpose  of,  1 ;  change  of  atti- 
tude toward  functions  of,  1,  2 ;  exten- 
sion of  functions  of,  2-4 

Government  securities,    127 

Governor,  46,  47,  49,  58,  70,  77,  82,  97, 
103,  104,  160,  162,  178,  181,  210,  217, 
222,  231,  232,  256,  257,  261,  268,  269, 
272,    302,    333,   335 

Grace,  days  of,  237 

Graded  roads,  legislation  relative  to,  19, 
20;  building  of,  by  private  corporations, 
23 

Grading,   285 

Grain,  combinations  for  buying  and  selling 
of,  130;  legal  weights  of  bushel  of,  216, 
217;  issuance  of  receipts  by  dealers  in, 
239 ;  regulation  of  sale  and  transfer  of, 
249 

Grain  dealers,  taxation  of,   310 

Granger  cases,  48 


Granger  Law,  contents  and  results  of,  46- 
48 

Graveling,  285 

Great  Lakes,  6 ;  plan  for  waterway  to  Mis- 
sissippi River  from,   11 

Greenbacks,  acceptance  of,  by  State  Bank, 
182 

Grimes,   James  "W.,   statement  by,    176 

Grist  mills,    water  power  for,   84 

Groceries,   sanitation  of,   227,   228 

Gross  earnings,  classification  of  railroads 
according  to,  47;  report  of,  49,  59,  62; 
reference  to,  55;  taxation  on  basis  of, 
56,    57,    61,   66 

Guarantee  funds,  139,  178,  184,  193,  210, 
212 

Guardians,  197,  249 

Guttering,  285 

Gj'psum  mines,  inspection  of,  257;  regula- 
tion of,  259 

Hailstorm  insurance,   148 

Harbors,  improvement  of,  2 

Harrison,    E.    H.,    343 

Harvey,  J.  A.,  334 

Hay,  legal  weight  of,  217;  weighing  of, 
281 

Health,   preservation   of,   281 

Health,  Iowa  State  Board  of,  76,  231,  232 

Health  insurance,   141,   144,   156 

Heating  apparatus,   regulation  of,  282 

Heating  plants,  powers  of  municipalities 
with  regard  to,   283-287 

Hedging,  encouragement  of,   69 

Herd  law,   75 

High  schools,  State  aid  to,  71;  mainte- 
nance of,  by   counties,   301 

Highway  Commission,  State,  establishment 
of,  26,  28;  powers  and  duties  of,  26, 
27,  28,  29,  31;  reference  to,  33,   73 

Highways,  legislation  relative  to,  16-31; 
crossing  of,  by  drains,  89 ;  ditches  along, 
90;  drainage  of,  92,  96,  100  (also  see 
roads) 

Hog  cholera,  measures  for  prevention  of, 
77 

Hog  cholera  serum,  manufacture  of,  73,  77 

Hoisting  engineers,    examination   of,   256 

Hoisting  machinery,  regulations  concern- 
ing,  258 

Holding   companies,    123 

Home  economics,  training  of  teachers  of, 
71 

Honey,  promotion  of  production  of,  76 

Horse  thieves,  protection  against,   78 


376 


ECONOMIC  LEGISLATION  IN  IOWA 


Horses,  laws  relative  to  diseases  of,   76 
Horticultural     societies,     incorporation     of, 

116 
Horticulture,  encouragement  of,  71 
Hospital  services,   273 
Hotels,   sanitation  of,   227,   228;   regulation 

of,  282 
Hours    of    labor,    limitation    of,    259,    260, 

266,  267,   268 
Household  servants,  272 
Huckstering,  prevention  of,  283 
Hundred  vi^eight,  definition  of,  217 
Hunting,  laws  relative  to,   102,   103 
Hunting  licenses,    313 

Ice  cream,  standard  for,  226 

Ice  cream  factories,  licenses  for,  228 

Ice  dealers,  taxation  of,  310 

Illinois,  ferries  authorized  by,  11;  bank- 
ing in,   186 

Illinois  Central  Railroad,   64 

Illuminating   oils,    258 

Imitations,   221,   222 

Improvement  bonds,  payment  of  contrac- 
tors in,  99 

Improvement  certificates,  issuance  of,   99 

Improvements,  taxation  of,  292,  309,  310; 
exemption   of,   from  taxation,   296 

Income,    report  of,    142 

Incorporations  (see  corporations  and  arti- 
cles of  incorporation) 

Incorporation  fees,  118,  119,  121,  122, 
123,   133 

Incorporation  laws,  powers  granted  by  gen- 
eral,   280-287 

Indebtedness,  limit  on,  116,  123,  133,  170, 
180,    191,    299 

Indemnity  for  work  accidents,   269-274 

Indiana,  banking  in,  168;  State  Bank  in, 
177 

Indians,  trails  made  by,   16 

Individual,  relation  of  government  to,   1,  2 

Individual  liability,    definition   of,    237 

Individualism,   tendency  away  from,   2 

Industrial  Commissioner,  Iowa,  position 
and  powers  of,   274 

Industrial  insurance,   274 

Inheritance  tax,  legislation  relative  to,  306, 
307 

Injuries,  compensation  for,  48  (see  acci- 
dents) 

Insecticides,  regulation  of  sale  of,  229 

Insolvency,  preference  in  case  of,  176, 
252;  procedure  in  case  of,  179,  188, 
246,   247;   deposits  in  case  of,   188 


Inspection  fees,   127 
Inspection  of  food,   220-229 
Inspectors,   appointment  of,   for  dairies,   76 
Inspectors   of  weights    and   measures,    216, 
220 

Instruments  of  credit,  legislation  relative 
to,  236,  237 

Insurance,  regulation  of,  2;  reference  to, 
116;  legislation  relative  to,  135-167; 
kinds  of,  141,  144;  legislation  applicable 
to  all  kinds  of,  159-163 ;  summary  of 
legislation   relative   to,    165-167 

Insurance  agents,  licenses  of,   160 

Insurance  companies,  incorporation  of, 
107,  109;  reference  to,  122,  124,  125, 
132;  taxation  of,  130,  163-165,  288, 
289,  298,  307;  chartering  of,  in  Terri- 
torial period,  135-137;  procedure  in  for- 
mation of,  140,  141;  contents  of  reports 
of,  142;  examination  of,  159,  160;  con- 
solidation of,  160;  legislative  investiga- 
tion of,  161;  recommendations  of  com- 
mittee concerning,    161 

Insurance  Department  of  Iowa,  position 
and  powers  of,  162,  163 ;  reference  to, 
274 

Insurance  examiner,   160 

Insurance  policies,  limitation  on  issuance 
of,  145;  cancellation  of,  145,  149; 
standard  form  for,  146 ;  determination 
of  value  of,   154,   155;  reference  to,   157 

Interest,  rates  of,  170,  181,  184,  193,  211, 
248,   252 

Inter-insurance  associations,   150 

Inter-insurance  contracts,  regulation  of, 
149,   150 

Internal  improvements,  encouragement  of, 
2;  taking  of  private  property  for,  37; 
legislation  relative  to,  84-102 ;  reference 
to,   117 

Interstate  commerce,  burden  on,  126,  127; 
regulation  of,    129,  250 

Interstate  Commerce  Act,   53 

Interstate  Commerce  Commission,  53 ;  sub- 
mission of  cases  to,   54 

Interurban  railroads,  regulation  of,  55 

Intra-state  commerce,  regulation  of,  48 

Inventories,   247 

Investigating  committees,  reports  of,  con- 
cerning banks,    171,    172 

Investment  agent,    197 

Investment  companies,  regulation  of,  126- 
129 

Investors,  laws  for  protection  of,  123-129, 
134 


INDEX 


377 


Iowa,  desire  of  people  of,  for  railroads,  36 
first  railroad  surveys  in,  37,  38;  land 
grants  to  railroads  in,  40-43 ;  total 
amount  of  railroad  subsidies  in,  42 ;  en 
couragement  of  railroads  in,  63 ;  agri- 
cultural character  of,  67;  wild  game  in 
102 ;  character  of  corporation  law  of, 
134;  development  of  insurance  business 
in,  135;  need  for  banks  in,  173,  174 
coal  mining  in,  254 ;  capitalistic  system 
in,   274,   275 

Iowa,  Territory  of,  desire  for  river  im 
provement  in,  7 ;  ferries  authorized  by. 
11;  road  legislation  of,  17-19;  charters 
granted  to  insurance  companies  by,  135 
137;  banking  legislation  of,  172;  regu 
lation  of  weights  and  measures  in,  215 
216;  mechanics'  lien  in,  243;  convict 
labor  in,  252  ;  incorporation  of  cities  in 
278,    279;    legislation   of,   289-295 

Iowa  Central  Air  Line  Railroad  Company 
40,  41 

Iowa  City,  road  convention  at,  24 ;  refer 
ence  to,  38,  41 ;  office  of  State  Bank  at 
178;  branch  bank  at,    181 

Iowa  Falls  &  Sioux  City  Railroad,   326 

Iowa  Insiurance  Report,   149 

Iowa  Mutual  Fire  Insurance  Company,  135 

Iowa  River,   7;   ferries  across,   11 

Irrigation,   2 

Itinerant  doctors,  regulation  of,   282,   313 

Jackson   County,    14 

Jitney  busses,   284 

Joint  rates,   making  of,    53 

Joint    stock    companies,     140;    taxation    of, 

164 
Junk  dealers,   regulation  of,   282 
Jury,  awarding  of  damages  by,  88,  89 
Justices  of  the  peace,  88 

Keerl,  I.  W.,  335 

Keokuk,    11,    38;    bridge    at,    15;    railroad 

aided  by,  38;  branch  bank  at,   181 
Keokuk,    Fort  Des  Moines,    and   Minnesota 

Railroad  Company,    10,   42,   45 
Keokuk  and  Illinois  Bridge  Company,    15 
Kirkwood,    Samuel  J.,   bill  vetoed  by,    186; 

reference  to,   343 

Labels,   regulation  of,   223,   224,   226 ;   pro- 
tection of,  242,  267 
Labor,  regulation  of  conditions  of,  2 
Labor    disputes,    provision    for    arbitration 
of,   268,  269 


Labor  legislation,  5,  251-276;  summary  of, 
274-276 

Labor  Statistics,  Bureau  of,  establishment 
and  work  of,  261-263;  factory  inspec- 
tion by,  264,  265;  reference  to,  275 

Laborers,  protection  of,  243;  mechanics' 
lien  of,  243-246;  provisions  for  safety 
and  comfort  of,  264,   265 

Lake,   Benjamin,   343 

Lamps,   condemnation  of,   232 

Land,  grants  of,  to  railroads,  36,  37,  40- 
43,  63,  64;  grants  of,  for  agricultural 
colleges,  72;  taxation  of  improvements 
on,   292 

Land  companj',  incorporation  of,   109 

Land-owners,    protection    of,    101,    102 

Lanes,   care  of,   278,   279 

Lard,   adulteration  of,   222 

Larrabee,  William,  statement  by,  42;  rec- 
ommendations of,   50 

Law  merchant,   236 

Lead  mining,   168 

Lee  County,    13,   14;   railroad  aided  by,   38 

Legal  process,   service  of,    112,    113 

Legislation,  Commission  for  Promotion  of 
Uniformity  in,  work  of,  237,  238,  240 
241 

Length,  standard  measures  of,  219 

Levee  districts,  pumping  stations  in,  96 

Levees,    construction   of,    88,    90,    93,    98 

Liabilities,  statement  of,    138,    142 

Liability  of  stockholders    (see  stockholders) 

Libraries,  exemption  of,  from  taxation,  290 

License  taxes,  28,  164,  289,  290,  296,  298, 
299,   302,   313 

Licenses,  requirement  of,  for  hunting  and 
fishing,  104;  securing  of,  by  investment 
companies,  126,  127,  128,  129;  grant- 
ing of,  to  insurance  agents,  160;  issu- 
ance of,  to  food-producing  establish- 
ments,  228;  rates  of,   293 

Life  insurance,  legislation  relative  to,  151- 
159;   basis  of  legislation  relative  to,   151 

Life  insurance  companies,  reports  of,  152- 
154 

Lightning  insurance,    148 

Lime,  legal  weight  of,   217 

Limited  liability,   110 

Limited  partnerships,  legislation  relative 
to,   233-236 

Linseed  oil,  labeling  of,  224;  regulation  of 
sale  of,   226 

Liquidation,   voluntary,   211 

Liquor  legislation,  4 

Liquors,     carrying     of,     by     express     com- 


378 


ECONOMIC  LEGISLATION  IN  IOWA 


panics,  60 ;  sale  of  adulterated,  prohib- 
ited, 221;  licenses  to  sell,  290 

Literary  institutions,  exemption  of,  from 
taxation,   292,   308 

Little  Sioux  River,   7 

Live-stock,  liability  for  injuries  to,  46; 
time  of  shipment  of,  51;  restraining  of, 
from  running  at  large,  74,  75 ;  driving 
away  of,  78;  insurance  of,   141,  144 

Lloyds,    150 

Loan  and  trust  companies,  fees  of,  191, 
195;  legislation  relative  to,  196-199; 
taxation  of,   200-206,   309 

Loan  associations  (see  building  and  loan 
associations) 

Loan  shark  bill,  248,   252 

Loans,  report  on,  153 ;  regulation  of,  190, 
191,  198;  associations  for  making  of, 
207-214;   interest  on,   211 

Local  government,  relation  of  road  admin- 
istration  to,    32 

Local  taxation,   demand  for,  57 

Locks,   requirement  of,   84 

Locomotives,  use  of  frosted  glass  on,  260 

Long  haul,   rates  for,    52 

Losses,  statement  of,  138;  liability  for, 
143;  report  on,  153,  154 

Lowe,  Ralph  P.,  recommendations  of,  177, 
186 

Lucas,   Robert,   recommendation   of,    17,    18 

Lumber,  inspection  of,  217;  reference  to, 
250 

Lyons  City,   branch  bank  at,    181 

Macadamizing,    285 

Macbride,  T.  H.,  335 

McGregor,  branch  bank  at,   181 

McGregor  &   Missouri   River   Railroad,   326 

McPherson,   Smith,  decision  by,   274 

Machine  shops,   58 

Machinery,  taxation  of,  132,  310;  safe- 
guards for,  264;  operation  of,  by  chil- 
dren prohibited,  266;  exemption  of,  from 
taxation,  308 

Mail  facilities,  250 

Manufacturers,  insurance  associations  of, 
150;  use  of  trade  marks  by,  242,  243; 
listing  of  property  of,  298;  taxation  of, 
310 

Manufacturers'  Association,  Iowa  State, 
242 

Manufacturing,  gathering  of  information 
concerning,    261,    262 

Manufacturing  companies,  incorporation  of, 
109;   reference  to,    117 


Maps,  making  of,  for  mines,  255,   258 
Maquoketa,  branch  bank  at,   181 
Maquoketa  River,   7;  bridge  over,   14 
Marine  insurance,    141 

Markets,    need    for    means    of    getting    pro- 
duce to,  7;  regulation  of,  250,  279,  280, 
281,   283 
Marks,  recording  of,   78 ;   counterfeiting  of, 

242 
Massachusetts,    65 

Materials,    mechanics'    lien    to    secure    pay- 
ment for,   243-246 
Measures,    regulation   of,    215-220 
Meat,  destruction  of  unsound,   282 
Meat  markets,    sanitation  of,    227,   228;   li- 
censes for,  228 
Mechanics'     liens,     legislation     relative     to, 
243-246;    reference   to,    251;    benefit    of, 
given    to    miners,    257;    benefit   of,    given 
to  railroad  employees,   259 
Medical  examination,    156 
Medical   services,    273 

Medicines,  regulation  of  sale  of,   221,  229 
Memberships,  regulation  of  sale  of,   124 
Mercantile  companies,    117 
Merchandise,   licenses  to  sell,   290 
Merchants,   insurance  associations  of,   150; 
regulation    of   transient,    279,    281,    282; 
licensing    of,    292;    exemption    of,    from 
taxation,     292;     listing    of    property    of, 
298;   taxation  of,  310 
Messages,  laws  relative  to  transmission  of, 

61 
Michigan,  Territory  of,   17;  mechanics'  lien 
in,   243 ;   convict  labor  in,   252 ;   tax  sys- 
tem of,  289 
Military  roads,   aid  given  by  Congress  for, 

19 
Milk,    adulteration    of,    221;    inspection    of, 
222;  pasteurization  of,  224;  licenses  for 
dealers   in,    226,    313 
Milk  bottles,   standardization  of,  219 
Milk  testing  apparatus,  226 
Mill  dams,  locks  at,   7 
Mill  products,   adulteration  of,   222 
Millage  tax,   provision  for,   294 
Miller,  A.  C,  335 
Miller,   Samuel  F.,  343 
Milling    companies,    incorporation    of,    107, 

109 
Mills,  water  power  for,  84,   85 
Milwaukee    Mutual    Fire    Insurance    Com- 
pany,   135 
Mine  foremen,   examination  of,  256;   duties 
of,  258 


INDEX 


379 


Mine  Inspectors,  Board  of  Examiners  for, 
256,   257 

Mine  Inspectors,  State,  powers  and  duties 
of,   254-259 

Mine  owners,  legislation  prescribing  duties 
of,   255-259 

Miners,  wages  of,  252,  257;  legislation  rel- 
ative to  labor  of,   254-259 

Miners'  Bank  of  Dubuque,  legislation  rela- 
tive to,   168-172 

Miner's  lien,  244,  254 

Mines,  legislation  relative  to,  81,  82,  254- 
259;  child  labor  in,  265 

Mines,   School  of,  73,  81 

Minimum  wages,  252 

Mining,  legislation  relative  to,  81,  82 

Mining  company,  incorporation  of,    109 

Minors,  protection  of  property  of,  37;  pro- 
tection of,   252 

Misbranding,  prohibition  of,  221,  226,  229, 
230,   231 

Misbranding  laws,   220 

Mislabeling,  prohibition  of,   222 

Misrepresentation,  prohibition  of,   156,   230 

Mississippi  and  Missouri  Railroad  Com- 
pany,  37,   40,   41 

Mississippi  Rapids  Railroad  Company,  law 
for  benefit  of,   35,   36 

Mississippi  River,  6,  40,  86;  Improvement 
of  navigation  of,  7 ;  plan  for  waterway 
from  Great  Lakes  to,  11;  ferries  across, 
11;  ferriage  rates  on,  12;  bridges  across, 
15,  45 

Missouri  River,  40,  42,  86;  railroad 
bridges  over,  45 

Moffifs  Mill,   16 

Molasses,   duty  on,  250 

Money,  safe-keeping  of,  144 ;  circulation  of 
bank  notes  as,  173;  need  for,  174; 
scarcity  of,   294 

Money  at  interest,  taxation  of,  294 

Money-lenders,  protection  against,   251 

Money  of  account,  laws  relative  to,  248 

Moneys  and  credits,  taxation  of,  131,  202, 
203,  204,  213,  294,  296,  297,  298,  304, 
305,   309 

Monopolies,  288 

Mortgaged  property,  taxation  of,   294 

Mortgages,  issuance  of,  by  railroads,  44, 
45;  foreclosure  of,  211 

Mortuary   assessment  rates,    159 

Motor  vehicle  taxes,  28,  29;  apportionment 
of,   30 

Motor  vehicles,   regulation  of,   28,   30 

Mount  Pleasant,  branch  bank  at,   181 


Municipal  corporations,  power  of,  to  enact 
economic  legislation,  277-287;  limit  on 
debts   of,    299 

Municipal  ownership,   283-287 

Municipal  securities,    127 

Municipalities,  power  of,  to  enact  economic 
legislation,    277-287 

Muscatine,  branch  bank  at,  181;  powers 
granted  in  charter  of,   278,   279 

Mutual  assessment  insurance  associations, 
legislation  relative  to,   147-151 

Mutual  benefit  associations,  legislation  rel- 
ative to,    156-158 

Mutual  companies,  regulation  of,  141,  143, 
145,  147-151 

Mutual  fire  insurance  companies,  granting 
of  charters  to,  135 

Mutual  insurance  associations,   140 

Nebraska,  Territory  of,  banking  charters 
granted  by,  174;  failure  of  banks  of,  176 

Negligence,  law  of,   271,   272 

Negotiable  instruments  law,  237,  238 

Net  earnings,   report  of,   59 

Non-resident  stock-holders,   56 

Non-residents,  protection  of  property  of, 
37;  taxation  of,  289,  292 

Nuisances,   prevention  of,   282 

Naptha,   inspection  of,   231,   232 

National  banking  system,  2,  201;  estab- 
lishment of,  182 

National  banks,  establishment  of,  186;  ref- 
erence to,  199 ;  taxation  of,  201,  202, 
204,   205,   309 

Navigation,  plans  for  improvement  of,  7, 
8-11;    improvement  of,    279 

Oats,  weight  of  bushel  of,  216 

Obstruction  of  roads,   19,   30 

Occupational  risks,    269 

Ocean   postage,    250 

Officers,   bonds  of,   249 

Offices,  keeping  of,  by  railroads,  48;  keep- 
ing of,  by  express  companies,  60 ;  keep- 
ing of,  by  telegraph  companies,  62 ;  keep- 
ing of,  by  corporations,    118,    119 

Ohio,  17;  State  Bank  in,  177;  tax  system 
of,  289 

Ohio   River,    6 

Oil-burning  apparatus,  condemnation  of, 
232 

Oil  inspectors,  powers  and  duties  of,  230- 
232 

Oil   testers,    231 

Oiling  of  roads,  30 


380 


ECONOMIC  LEGISLATION  IN  IOWA 


Oils,    carrying    of,    by    express    companies, 
60;   regulation  of  sale  of,   230-232;   pro- 
hibition of  sale  of  impure,  in  mines,  257 
Oleomargarine,    regulation    of    manufacture 
and   sale   of,    221;    internal   revenue    tax 
on,   222 
Operating  expenses,  report  of,   62 
Oskaloosa,  branch  bank  at,   181 
Outlets,   provision  for,   in  mines,   255 
Output,  combinations  for  limiting,   129,  130 
Overflowed    lands,     legislation    relative    to, 

86-88;    reclamation   of,    98 
Overhead  obstructions,  height  of,   259,   260 

Packing  houses,  sanitation  of,   227 

Paints,  labeling  of,   224 

Panama  canal,  2 

Panic  of  1837,   168,   171,   172 

Panic  of   1857,   effect  of,   174,    176 

Papers,   safe-keeping  of,    144 

Parking,   285 

Parliament,  act  of,  237 

Partners,  liability  of,  for  partnership  debts, 

234,   236 
Partnerships,     35 ;     legislation    relative    to, 

107-109,    233-236 
Passenger  rates,  fixing  of,  by  law,   46,   47, 

49,  50,  55;  fixing  of,  by  commission,  51, 

52 
Passes,     abolition     of,     recommended,     50; 

permission    to     issue,     52 ;     abolition    of 

giving  of,  55 
Patents,  250 
Patrol  of  roads,   30 
Paving,   285 

Pawnbrokers,  regulation  of,   282 
Peddlers,   regulation   of,    282;    licensing  of, 

290;  tax  on,  313 
Peddling,   regulation  of,   250 
Pedigrees,    registration   and   publication   of, 

75 
Penitentiary,   convict  labor  at,   253 
Personal    property,     safe-keeping    of,     141, 

144;   taxation  of,  202,   308,   309,   310 
Petroleum,    laws    for    inspection    and   regu- 
lation of,   230-232 
Pharmacy  Commissioners,  224 
Piers,  283 
Pioneers,  routes  of,  in  coming  to  Iowa,  6; 

use  of  rivers  by,   7;   need  of,  for  ferries, 

11;     attitude    of,    toward    public    service 

corporations,     23;     attitude     of,     toward 

banks,    199 
Pit  bosses,    examination   of,    256 
Plank  roads,  legislation  relative  to,   19,  20 


Plate  glass,   insurance  of,    148 

Plumbers,    licensing   of,    282 

Poisons,    adulteration   of,    222 

Police  ordinances,   power  to  pass,   286 

Policies    (see  insurance  policies) 

Policy-holders,  protection  of,  145 ;  rights  of, 

147 
Political  contributions,  law  relative  to,  121, 

162 
Politico-economic  legislation,   5 
Poll    taxes,    30,    290,    292,    296,    297,    298, 

300,   312,   313;   working  out  of,   293 
Pooling,  prohibition  of,   52,   129 
Pools,   prohibition  of,   46,   249 
Poor  relief,  4;   tax  rate  for,   297,  300 
Poultry  associations.   State  aid  to,   76 
Powder,   storage  of,   in  mines,   257 
Power  brakes,   55,   259 
Prairie  du   Chien,    16 
Preferences,    giving   of,    prohibited,    51 
Preferred  stock,  48 ;  regulation  of  issue  of, 
54;    issuance   of,    133;    issuance  of,    pro- 
hibited,  211 
Premium  notes,   method  of  redeeming,    141 
Premiums,     awarding    of,    for    agricultural 

products,   68,    69 
Premiums   (insurance),  definition  of  classes 
of,   147;  reference  to,  150,   157;  taxation 
on    basis    of,    151,    163-165;    report    on, 
153,   154;   rate  of,   211 
Price,   Hiram,   343 
Price,   combinations  for  regulation  of,   129, 

130 
Prisoners,   employment  of,   252,   253 
Private  banks,   199;   taxation  of,  205 
Private  corporations,  privileges  given  to,  85 
Private  property,  taking  of,  for  public  use, 
37,  96;   taking  of,  by  railroads,   48,   55; 
taking  of,  for  private  purposes,  89,  92 
Process,    service    of,    117,    134,    138,    150, 

152,   210 
Profits,   restrictions  on,   2 
Promissory    notes,    legislation    relative    to, 

237 
Promoters,   regulation  of  activities  of,    126- 

129 ;  reference  to,   197 
Property,    insurance   of,    against   loss,    144, 
148;     redemption    of,     291;     classes    of, 
subject  to  taxation,   296,    297;   valuation 
of,   for  taxation,   304;   basis  of  valuation 
of,   308-311 
Provisions,  destruction  of  unsound,  282 
Proxy,  voting  by,  162,   180 
Pryce,   S.  D.,   article  by,  24 
Public   grounds,    care  of,    284 


INDEX 


381 


Public  service  corporations,  development  of 
demand  for  regulation  of,  23 ;  reference 
to,    123 

Public  utilities,  123,  279;  powers  of  mu- 
nicipalities with  regard  to,  283-287; 
need  for  regulation  of,  285,  286 

Pumping  stations,   96,    100 

Pure  food,  laws  relative  to,   3,   220-229 

Raccoon  River,    9 

Racine  Mutual  Fire  Insurance  Company, 
135 

Railroad  cars,  breaking  into,   60 

Railroad  Commission,  establishment  and 
work  of,  48-56;  reference  to,  60,  65,  66; 
powers  and  duties  of,  260 

Railroad  companies,   132 

Railroad  corporations,  meaning  of  term,  51 

Railroad  crossings,  48,   55 

Railroad  employees,  protection  of,  55 

Railroad  rates,  publicity  of,  45 ;  abuses  in 
connection  with,  46 ;  fixing  of,  by  law, 
46-48,  65;  fixing  of,  by  commission,  51, 
52,  53;  schedules  of,  52;  investigation 
of,    54 

Railroad   terminals,    valuation   of,    58 

Railroads,  6,  7,  10,  111,  115,  117,  244; 
legislation  relative  to,  35-66;  period  of 
agitation  for,  35-38 ;  inducements  for 
building  of,  36,  37;  first  surveys  for,  in 
Iowa,  37,  38;  tax  aid  to,  38;  legal  bond- 
ed indebtedness  of,  39,  40 ;  land  grants 
to,  40-43,  63,  64,  325,  326;  total 
amount  of  subsidies  to,  42 ;  regulation 
of.  43-56;  period  of  construction  of,  43, 
44 ;  attitude  of  officers  of,  44 ;  consoli- 
dation of,  44 ;  offices  of,  45 ;  liability  of, 
46;  effect  of  Granger  Law  on,  46-48; 
classification  of,  47,  49,  55 ;  relocation 
of,  48 ;  interference  with  property  of, 
48 ;  regulation  of,  by  Railroad  Commis- 
sion, 48-56;  annual  reports  by,  49;  in- 
debtedness of,  55 ;  taxation  of,  56-59, 
130,  288,  310,  311;  summary  of  legis- 
lation relative  to,  63-66 ;  drainage  of 
rights  of  way  of,  90 ;  issuance  of  bonds 
by,  116;  pooling  by,  129;  payment  of 
wages  by,  252 ;  legislation  relative  to  la- 
bor on,  259,  260;  modifications  of  em- 
ployers' liability  with  regard  to,  270, 
271 

Rapids  in  Mississippi  River,  7 ;  canal 
around,  11 

Rates  (see  railroad  rates,  freight  rates, 
passenger  rates,  express  rates,  etc. ) 


Rating  bureau  act,    147 

Real  estate,  taxation  of,  131,  213,  309, 
310;  insurance  companies  prohibited 
from  holding,  138;  limit  on  power  to 
buy  and  hold,  141,  155;  holding  of,  by 
banks,  170,  180,  185,  193;  deduction 
of,  in  valuation  of  stock,  204 ;  loans  on, 
210;   liability  of,  to  mechanics'  lien,   244 

Rebates,   prohibition   of,    51 

Receivers,  appointment  of,  119,  120,  187, 
188,   197,   212;   duties  of,   179 

Reciprocal  contracts,  regulation  of,  149, 
150 

Reclamation,   legislation  relative  to,    85-102 

Refrigerating  warehouses,  regulation  of, 
226,    227 

Register,  Iowa  State,  24 

Register  of  Des  Moines  River  Improve- 
ment, 9,   10 

Register  of  State  Land  Office,    10 

Registrar,   197 

Registration  fees,  28 

Regulation,    growth   of  policy  of,    1,    2 

Regulation  of  railroads,   43-56 

Re-insurance,    160 

Re-insurance  reserve,   149 

Religious  institutions,  exemption  of,  from 
taxation,   308 

Reports,  making  of,  by  corporations,  122, 
133,  134;  making  of,  by  insurance  com- 
panies, 138,  142,  143,  148,  152-154; 
making  of,  by  mutual  associations,  149 ; 
making  of,  by  fraternal  associations, 
159;  making  of,  by  banks,  188;  making 
of,  by  building  and  loan  associations, 
210,   212. 

Reserves,  amount  of,  141;  provision  for, 
149;  maintenance  of,  180,  182,  185, 
190,   195,   196;  taxation  of,   213 

Restaurants,  sanitation  of,  227,  228;  reg- 
ulation of,  282 

Revenue,   securing  of,  by  taxation,   288 

Revenue  laws    (see  taxation) 

Revision  of  1860,  revenue  law  in,  300,  301 

Rights  of  way,  granting  of,  to  railroads, 
37;  granting  of,  to  telegraph  and  tele- 
phone companies,  61,  62;  purchase  of, 
for  drainage  outlet,  96 ;  abandonment 
of,  48 ;  laws  relative  to,  55 ;  drainage  of, 
90 

Risk,    assumption  of,    270,    271,   272,   273 

Risks,  report  of,  142;  limitation  of,  144; 
amount  of,  carried  by  mutual  associa- 
tions,   149 ;   re-insurance  of,   160 

Rivers,    improvement  of,    2,    6 ;   use   of,   by 


382 


ECONOMIC  LEGISLATION  IN  IOWA 


early  settlers,  6,  7;  desire  for  improve- 
ment of,   7 

Road  bed,   improvement  of,    53 

Road  convention,   24 

Road  districts,  establishment  of,  18,  21; 
consolidation  of,  25,  26;  division  of 
townships   into,    27 

Road  funds,   25 

Road  improvement  associations,  30 

Road   improvement   districts,    27 

Road  patrolmen,  30 

Road  superintendents,   instruction  of,   26 

Road  supervisors,  18,  92 ;  system  of,  20 ; 
law  relative  to,  21 

Road  taxes,  distribution  of,  22 ;  levy  of, 
25,  26,  30 

Roads,  legislation  relative  to,  16-31;  work 
on,  18;  establishment  of,  by  special  laws 
prohibited,  21;  building  of,  by  private 
corporations,  23 ;  movement  for  good, 
24-26;  powers  and  duties  of  Highway 
Commission  with  regard  to,  26,  27,  28, 
29,  31;  dragging  of,  27,  28,  29;  classi- 
fication of,  29;  federal  aid  in  building 
of,  30,  31;  summary  of  legislation  rela- 
tive to,  32-34;  crossing  of,  by  railroads, 
37;  hours  of  labor  on,  267,  268;  work- 
ing out  of  taxes  on,  293 ;  tax  rate  for, 
297,  301;  poll  tax  for  care  of,  298; 
labor  on,    300,    312,   313 

Rock  Island  and  La  Salle  Railroad  Com- 
pany,  38 

Rye,   weight  of  bushel  of,   216 

Safety  appliances,  50,  54,  55 ;  provisions 
for,   in  mines,   255-259 

Safety  fund,   178 

Safety   gates,    255 

Sales,   record  of,   239 

Sanitation,    226,    227,    228 

Savings  and  loan  associations,  209;  regu- 
lation of,  210 

Savings  banks,  187,  188,  198;  legislation 
relative  to,  192-196;  taxation  of,  203, 
204,    205,    309 

Saw  mills,  water  power  for,  84 

Scales,  regulations  for  weigh-masters  of, 
218;   inspection  of,  220,   257 

Scavengers,  regulation  of,   282 

School,   compulsory  attendance  at,   266 

School  fund,  investment  of,  99 

School  lands,  exemption  of,  from  taxation, 
292 

School  property,  insurance  of,   148 

School  teachers,  minimum  wages  for,  252 


Schools,  teaching  of  agriculture  and  home 
economics  in  rural,  71;  tax  rate  for 
support  of,   297,   300 

Scientific  institutions,  exemption  of,  from 
taxation,   292,    308 

Screen  laws,   257 

Sealers  of  weights  and  measures,  218,  220 

Secretary  of  State,  18,  20,  58,  119,  121, 
122,  133,  134,  180,  302;  articles  of  in- 
corporation filed  with,  116,  120,  121, 
187,  189,  192;  licenses  issued  by,  126, 
127;  papers  filed  with,  128;  examination 
by,  128;  official  weights  and  measures 
kept  by,  217 

Securities,  protection  of  investors  in,  123- 
129;  investments  in,  141,  147,  152,  155, 
156,  193;  deposit  of,  154,  184,  192, 
210,  212;  loans  on,  210 

Seeds,  regulation  of  sale  of,  225,  226 

Serums,    77,   80 

Settlers,  use  of  rivers  by,  6,  7 ;  relief  to, 
48    (also  see  pioneers) 

Sewage  disposal  plants,    285 

Sewers,   279,   280,   285 

Shares,  non-transferability  of,  109;  regu- 
lation of  sale  of,  124 

Sheep,  laws  relative  to  diseases  of,  76 ;  ex- 
emption of,  from  taxation,   292 

Sheep  inspectors,   77 

Sheriff,  37;  collection  of  taxes  by,  291 

Shingles,  inspection  of,   217 

Shipments,  units  for,   51,   52 

Shippers,  lack  of  protection  for,  44 

Short  courses,   71 

Short  haul,   rates  for,   52 

Shot  examiners,   examination  of,   257 

Sickness,   compensation  during,   273 

Sidetracks,  58 

Signatures,  regulations  concerning,   237 

Sinking  fund,   114 

Sioux  City  and  St.  Paul  Railroad,  326 

Sisal  grass,   250 

Skunk  River,   7;  bridge  over,   13,   15 

Slagle,  C.  W.,  343 

Slaughter  houses,  sanitation  of,  227;  li- 
censes for,  228 

Sleeping  cars,   taxation  of,   58 

Slot  machines,  licensing  of,   219 

Smith,  W.  T.,  343 

Smoke  nuisances,  abatement  of,  282 

Social  legislation,   4,   5 

Socio-economic  legislation,   4,   5 

Soldiers,   exemption  of,    from  taxation,   308 

Spanish  fever,    76 

Speaking  tubes,  255 


INDEX 


383 


Special  charter  cities,  powers  of,   277-280 

Special  legislation,  prohibition  of,  21,  110, 
115,  137,  173,  280,  299;  evUs  of,  109; 
incorporation  of  cities  by,  277,   278 

Special  rates,  prohibition  of,  51 

Specie,  lack  of,  174;  redemption  of  notes 
in,   179 

Specie  payments,  suspension  of,  176,  182, 
184 

Speculation,  era  of,  168 

Stallions,  laws  relative  to  keeping  of,  75 

Standard  weights  and  measures,   216-220 

State,  inability  of,  to  become  stockholder, 
115;   fiscal  authority  given  to,   296,   302 

State  aid,   68,   70,  71,   76 

State  Bank,  authorization  of,  175,  176; 
law  establishing,  177-181;  organization 
and  history  of,  181-184;  withdrawal  of 
circulation  of,  182,  183 ;  re-organization 
of  branches  of,  as  national  banks,  186; 
taxation  of  branches  of,  201,  205;  ref- 
erence to,  202,  301;  commissioners  and 
directors  of,   343 

State  banks,  growth  in  number  of,  168 ; 
tax  on  circulation  of,  182 ;  legislation 
relative  to,  186-192;  definition  of,  188; 
dissolution  of,  191,  192;  taxation  of, 
203,  204,  205,  309 

State  mutual  insurance  associations,  148, 
149 

State  roads,  establishment  of,  20,  21 

State  treasury,  amount  of  railroad  taxes 
received  by,   57 

Statements,  making  of,  by  insurance  com- 
panies, 138,  150,  152;  forms  of,  144; 
making  of,  by  banks,  170,  181,  185, 
187,  191,  194,  195;  making  of,  by  loan 
and  trust  companies,   198 

States,  economic  legislation  by,  3,  4;  ex- 
emption of  corporations  organized  in 
other,  117;  uniformity  in  legislation  of, 
237,   238,   240,   241 

Stations,  building  of,  by  railroads,  53 ;  im- 
provement of,  53 ;  sanitary  conditions  in, 
54;  changing  names  of,  54,  55 

Steam  boilers,  explosions  of,  144 ;  refer- 
ence to,   264;   inspection  of,   282 

Steam  power,  water  power  displaced  by,  85 

Steamboats,  legislation  relative  to,   7,   8 

Steel,   duty  on,   250 

Stevenson,  W.  H.,   335 

Stipulated  premium  plan,    157,    158 

Stock,  taxation  of  shares  of,  56;  report  of 
value  of,  62;  transfer  of  shares  of,  118; 
regulation  of  issuance  of,  119,  121,  122, 


133,  209;  limit  on  ownership  of,  123; 
regulation  of  sale  of,  126 ;  transferability 
of  shares  of,  141;  assignment  and  trans- 
fer of,  170,  171;  deposit  of,  as  security, 
178;  taxation  of  shares  of,  200,  201, 
202,   204-206,   213,  294,  309,  310 

Stock  Breeders'  Association,  Iowa  Im- 
proved, 73 

Stock  breeding,  laws  relative  to,  75,   76 

Stock-brokers,  regulation  of,   129 

Stock  companies,  regulation  of,  141,   151 

Stock  raising,   legislation  relative  to,   74-78 

Stockholders,  liability  of,  for  corporate 
debts,  35,  45,  110,  112,  113,  114,  115, 
119,  123,  176,  181,  188,  193;  reference 
to,  44,  201,  203,  310;  resolution  of, 
116,  117;  election  of  directors  by,  140, 
169,  170,  209;  requisitions  upon,  143; 
rights  of,  in  insurance  companies,  162 ; 
restrictions  on,  173;  voting  by,  180; 
assessments  on,  189,  195;  list  of,  fur- 
nished to  assessor,  204;  taxation  of, 
205,   206;   fines  charged  to,  211 

Stoppings  in  mines,  258 

Storekeepers,   licensing  of,   292 

Stray  animals,   taking  up  of,   74 

Streams,  use  of,  by  settlers,  16;  straighten- 
ing of  channels  of,  98 

Street  cars,   equipment  of,   260 

Street  railways,  powers  of  municipalities 
with  regard  to,  285-287;  taxation  of, 
310 

Street  trades,    children   in,   267 

Streets,  railroad  tracks  in,  48;  care  of, 
278,  279,  280,  281,  284;  street  railways 
in,   285;   franchises  for  use  of,   285 

Sub-contractors,  effect  of  mechanics'  lien 
on,   245 

Subscriptions,  opening  of  books  for,   140 

Sugar,   duty  on,  250 

Sunday,   trains  on,   50 

Superintendent  of  roads,    25 

Supervisor  system  of  county  government, 
22 

Supreme  Court  of  Iowa,  decisions  of,  92, 
202,   286 

Supreme  Court  of  United  States,  274 

Sureties,  law  relative  to,  249 

Surface,  standard  measures  of,  219 

Surface  waters,   drainage  of,  96 

Surgical  services,   273 

Surplus,  investment  of,   141 

Surplus   funds,   authorization  of,    196 

Swamp  lands,  legislation  relative  to,  86- 
88,  333,  334 


384 


ECONOMIC  LEGISLATION  IN  IOWA 


Switch   engines,    260 
Switching  of  cars,   51 
Switching  rates,  54 
Switching  service,  55 

Tariff,  memorials  concerning,   250 

Tax  commission,  work  of,  303,  304,  305, 
306,    315 

Tax  deeds,  291 

Tax  exemptions,  290,  292,  293,  294,  296, 
298,   299,   301,   802,   308,   309,   313 

Tax   ferret   system,    304 

Tax  legislation    (see  taxation) 

Tax  liens,   291 

Tax  rat€,  fixing  of,  291,  297,  300,  302, 
311,    312,   361 

Tax  titles,  293,  302 

Taxation,  laws  relative  to,  as  applied  to 
railroads,  56-59 ;  laws  relative  to,  as  ap- 
plied to  express  companies,  60,  61;  laws 
relative  to,  as  applied  to  telegraph  and 
telephone  companies,  62 ;  basis  of,  for 
corporations,  115;  relief  from  double, 
116;  legislation  relative  to,  as  applied  to 
corporations,  130-132;  legislation  rela- 
tive to,  as  applied  to  insurance  com- 
panies, 163-165;  legislation  relative  to, 
as  applied  to  banks,  200-206;  legislation 
relative  to,  as  applied  to  building  and 
loan  associations,  213;  general  legisla- 
tion relative  to,  288-315;  importance  of, 
288 ;  features  of,  during  Territorial  pe- 
riod, 289-295;  features  of,  from  1846  to 
1857,  295-299;  constitutional  provisions 
relative  to,  299;  features  of,  from  1857 
to  1873,  300-302;  features  of,  from 
1873  to  1917,  302-306;  special  phases 
of,  306,  312,  313;  present  system  of, 
307-312;  summary  of  legislation  relative 
to,  313-315 

Taxes,  levy  of,  for  roads,  18;  levy  of,  by 
special  laws  prohibited,  21 ;  levy  of,  in 
aid  of  railroads,  38-40;  levy  of,  for 
agricultural  improvement,  71;  levy  of, 
for  prospecting  for  coal,  81;  levy  of,  to 
pay  drainage  bonds,  91,  95;  payment  of, 
for  drainage  projects,  95 ;  reference  to, 
247;  levy  of,  by  municipalities,  279; 
sale  of  property  for,  291;  payments  of, 
in  notes,  301;  semi-annual  payment  of, 
303 

Telegraph  companies,  legislation  relative  to, 
61,  62;  reference  to,  130,  132;  taxation 
of,   288,   310,   311 

Telegraph  lines,  286 


Telephone  companies,  legislation  relative  to, 
61,  62;  taxation  of,  130,  288,  310,  311; 
reference  to,   132 

Telephone   lines,    260,    286 

Telephones,  285,  287 

Tender,  definition  of,  237;  law  relative  to, 
249 

Territorial  Agricultural  Society,  organiza- 
tion of,  67 

Territorial  roads,   establishment  of,    16-19 

Texas  fever,   76 

Theft,  insurance  against,   148 

Thistles,  destruction  of,  69 

Threshing  machines,  enclosing  of  tumbling 
rods  on,  267 

Tile  drains,    construction  of,   91,    92 

Timber,  supply  of,  in  mines,  255 

Toll  bridges,   13-15 

Toll  roads,  legislation  relative  to,  19,  20; 
building  of,    by  private   corporations,    23 

Tompkins,   L.  J.,   241 

Ton,  definition  of,  217 

Tontine  contracts,  regulation  of  sale  of, 
124 

Tools,  exemptions  of,  from  taxation,  290, 
308 

Tornado   insurance,    148 

Towns,  bridge  tax  in,  15 ;  taxes  by,  in  aid 
of  railroads,  36,  38-40;  power  of,  to 
enact  economic  legislation,  277-287;  le- 
gal status  of,  282 

Township  drag  funds,   30 

Township  road  fund,  25 

Township  road  systems,   29 

Township   roads,    18 

Township  trustees,  powers  of,  in  road 
matters,  25;  instruction  of,  26;  duties 
of,  29,  89;  reference  to,  77,  230;  equal- 
ization of  taxes  by,   311 

Townships,  law  for  organization  of,  18 ; 
division  of,  into  road  districts,  18,  21, 
27;  diminution  in  powers  of,  20;  resto- 
ration of,  to  power  in  road  matters,  20, 
21;  election  of  supervisors  by,  21;  abol- 
ition of  representation  by,  22 ;  consoli- 
dation of  road  districts  in,  25,  26;  ref- 
erence to,  28;  aid  given  to  railroads  by, 
36;  apportionment  of  taxes  among,  61; 
agricultural  societies  in,  67;  assessment 
of  taxes  by,  292,  294,  298,  299,  300 

Toxines,   77,   80 

Track  connections,  45 

Trade,  legislation  relative  to,  215-250;  mis- 
cellaneous laws  relative  to,   248-250 

Trade  marks,  adoption  of,  229,  242,   243 


INDEX 


385 


Trade  unions    (see  unions) 

Trails,    16 

Train   brakes,    259 

Trainmen,   hours  of  labor  of,  260 

Trains,  speed  of,  53,  54;  safety  appliances 
on,  54 

Transfer  agent,    197 

Transfers,   record  of,   239 

Transportation,  regulation  of,  2;  legisla- 
tion relative  to,  6-34;  means  and  meth- 
ods of,  6,  7;  meaning  of  term,  51;  reg- 
ulation of  local,  279,  280,  281,  284  (see 
also  water  transportation,  rivers,  fer- 
ries,  bridges,   roads,   railroads,   etc.) 

Transportation   insurance,    145 

Traveling  ways,   258 

Treasurer,  State,  57,  58,  175,  302,  307; 
duties  of,  217 

Treasurer  of  United  States,  deposit  of  se- 
curities  with,    192 

Treasury  notes,  payment  of  taxes  in,   301 

Trespassing,    102 

Truck  law,  257 

Trust   business,    196 

Trust  companies,  taxation  of,  130,  200- 
206;  legislation  relative  to,   196-199 

Trustees,  197;  assignment  of  property  to, 
246-248 

Trusts,  regulation  of,  2 ;  laws  against,  129, 
130;   prohibition  of,  249 

Tumbling  rods,    enclosing   of,    267 

Turnpike  companies,  incorporation  of,  107, 
109 

Turnpikes,  19;  crossing  of,  by  railroads,  37 

Turpentine,   regulation  of  sale  of,   226 

Unclaimed  goods,   disposal  of,   59,   60 

Underground  drains,  construction  of,  91, 
92 

Underwriter,   197 

Uniformity  in  legislation,  commission  on, 
work  of,   237,   238,   240,    241 

Union  Mills,  bridge  at,    15 

Union  Pacific  Railroad  Company,  46 

Unions,  protection  of  labels  of,  242 ;  in- 
corporation of,   267 

United  Mine  Workers,   265 

United  States,  growth  of  governmental  reg- 
ulation in,  2-4 ;  growth  of  insurance 
business  in,  135;  standard  weights  and 
measures  of,  217;  prohibition  of  taxa- 
tion of  property  of,   289 

University  of  Iowa,  State,  department  of 
physics  of,   220 

Usury,  prohibition  of,   248 


Vaccines,   77 

Valuation  of  property,  293,  299,  302,  304; 

basis  of,   308-311 
Ventilation   in  mines,   258 
Veterinary  medicine,  practice  of,   77 
Veterinary     Surgeon,     State,     70;     position 

and   duties   of,    76-78 
Vinegar,  standard  for,  224 
Virginia,    tax  system   of,    289 
Vocational    training,    4 
Volume,   standard  measures  of,   219 

Wabesipinicon   Bridge  Company,    14 

Wages,  semi-monthly  payment  of,  55; 
claims  for,  247;  assignment  of,  247, 
248;  legislation  relative  to,  251,  252; 
payment  of,  to  miners,  257;  payment  of, 
to  railroad  employees,  260;  indemnity 
based  on,   273 

Wapello,    16 

Wapsipinicon  River,   7;   bridges  over,   14 

Warehouse  receipts   law,    238-240 

Warehouseman,  law  relative  to  contracts 
made  by,   238-240 

Warehouses,   regulation  of,    227 

Washington,  branch  bank  at,   181 

Water-closet  facilities,   264 

Water   companies,    132 

Water-courses,    improvement   of,    90,    93 

Water-crafts,   regulation  of,   279 

Water-power,  investigation  of  possibilities 
of,   98 

Water  power  companies,   132 

Water  power  improvements,  legislation  rel- 
ative to,   84,   85 

Water  supply,    280,    281 

Water  transportation,  legislation  relative 
to,   6-8 

Water- works,  281;  powers  of  municipali- 
ties with  regard  to,  283-287;  taxation  of, 
310 

Weather  and  Crop  Service,  Iowa,  establish- 
ment  of,    69;    reference   to,    70 

Weed,   Chester,   343 

Weeds,   destruction  of,   30,    69 

Weighing   machines,    licensing   of,    219 

Weighmasters,   regulations  for,   218 

Weights  and  measures,  regulation  of,  215- 
220;    inspection   of,    279 

Weights  and  Measures,  State  Superintend- 
ent of,   provision  for,   217,   218,   219 

West,   early  banking  in,    168 

Wharves,    279,    280,    281,    283 

Wheat,  weight  of  bushel  of,  216 
White  lead,  labeling  of,  224 


386 


ECONOMIC  LEGISLATION  IN  IOWA 


Whiting,   Timothy,    343 

Wild  animals,  bounties  for  killing  of,  78 

Wild   cat  banking,    199 

Williston,   Professor,   241 

Windstorm  insurance,   148 

Wilson,    Mr.,    256 

Wilson  Tariff  Bill,  250 

Wire,    duty  on,   250 

Wires,  stringing  of,  53,  62,  260,  285 

Wisconsin,  banking  in,   186 

Wisconsin,  Territory  of,  6,  7,  32,  277; 
ferries  authorized  by,  11;  legislation  of, 
relative    to    roads,    16,    17;    Iowa    road 


system  inherited  from,  17,  18;  corpora- 
tion laws  of,  107;  insurance  company 
chartered  by,  135;  bank  chartered  by, 
169;  mechanics'  lien  in,  248;  tax  sys- 
tem of,   289 

Wisconsin  River,  6,  7 

Women,  protection  of  property  of,  37;  pro- 
tection of,  252;  hours  of  labor  of,  263; 
law  for  protection  of  health  of,   354 

Work  accident  indemnity,  55,  269-274 

Workman's  Compensation  Act,  269,  272- 
274 

Workmen's   cooperative  associations,    118 


UC  SOI)  I  HI  UN  HI  I.IONAL  LIBHAHY  I  ACUITY 


AA    000  913  927    0 


